A beneficiary change can occur
a) only upon the request of the revocable beneficiary
b) only on specified dates within the policy
c) normally at any time during the policy term
d) at no time
The Correct Answer Is:
- c) normally at any time during the policy term
A beneficiary change can occur normally at any time during the policy term. Regardless of whether the beneficiary is still alive or not, a beneficiary change can happen at any time during a policy term. Insurance companies must notify all beneficiaries when a beneficiary passes away so that they can receive benefits. It is possible to request removal of a beneficiary’s name from the list of beneficiaries if there are multiple beneficiaries and one does not want to continue receiving benefits from the policy.
As long as all other statutory requirements are met, a beneficiary change can be made without the revocable beneficiary’s request. Beneficiaries can be changed by executors or those authorized to make health care decisions for the deceased if no will exists or if there is no primary beneficiary.
If you wish to change beneficiaries, you should consult with an attorney and consider all of your options. There can be complications involved in beneficiary changes, and a court may need to approve them. Your decision should be documented in writing, along with reasons for the change. There is a common misconception that beneficiary changes can only occur on specific dates within a policy, but this is not true. As long as the beneficiary change occurs before the policy anniversary, they can change on any date within the policy.