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Updating your Beneficiary

Posted on by mjsaxton@ksu.edu

Most of us designate life insurance, retirement and other beneficiaries when we are first hired for a job. As we focus on our careers and changes within our lives, those designations often become afterthoughts.

If you were asked today who your beneficiary is, would you know with certainty?  If you have had any life changes since your last designation, it may be time to update your beneficiaries. Is your beneficiary an ex-spouse or someone who has fallen out of favor? Did you know that your beneficiary designations can be updated anytime?

To ensure you have the most up-to-date designation for your beneficiary(ies), it is recommended to complete or submit an updated beneficiary form if one of the following events occurs:

  • Begin employment
  • Retire or terminate employment
  • Changes in marital status, including marriage and divorce; birth or adoption.
  • A death within your family or of a designated beneficiary.
  • At any time you are unsure of your designated beneficiary(ies).

By: Brenda Langdon

What is a Beneficiary?

Posted on by mjsaxton@ksu.edu

Although it may be an uncomfortable topic, beneficiaries are individuals you designate to receive a benefit if you become deceased. You may designate one or more individuals to receive any death-related benefits, such as a retirement benefit, life insurance benefit, or funds from your FSA.

Most benefits allow a participant to designate multiple beneficiaries with either a primary or contingent designation. A primary beneficiary receives the benefit when you become deceased. If more than one individual is designated as a primary beneficiary, funds are split evenly between them. Contingent beneficiaries only receive the benefit in the event that both you and the primary beneficiaries are also deceased. It is important to note that an individual cannot be both a primary and contingent beneficiary. In most cases, you may have as many primary and/or contingent beneficiaries as desired.

By: Brenda Langdon

Planning Ahead

Posted on by mjsaxton@ksu.edu

Fall is as good of time as any to make sure you review such things as the following:

  • Beneficiary Designations for Life Insurance and other accounts
  • Financial Power of Attorney
  • Power of Attorney for Health Care
  • Checking accounts
  • Asset ownership

 

Not sure where to start?

Check out K-State Research and Extension publication MF3280 at https://bookstore.ksre.ksu.edu/pubs/MF3280.pdf

In an emergency, would your family or trusted friend know who to contact?  Your bank? Your financial adviser? Your insurance company?

Our Valuable records, is a form-fillable publication from K-State Research and Extension that will guide you as you gather important information in one place. Be sure to share it with those who need to have access.  Find this resource at https://bookstore.ksre.ksu.edu/pubs/MF685.pdf.

By: Brenda Langdon