What to Know About Beneficiaries

Your beneficiary is the individual(s) (or entity(ies) that would receive the payout from your life insurance (and other policies that provide a death benefit) should you die while the policy is in effect.

Almost anyone can be a life insurance beneficiary, including people or entities – such as a trust or your estate. If you designate more than one beneficiary, the proceeds are divided equally unless you indicate otherwise on the beneficiary designation form. You can divide the proceeds based upon a percentage or fraction, as long as the total equals 100%.

Primary beneficiaries are your first selections to receive the insurance proceeds payable at the time of your death. Contingent beneficiaries receive the payout only in the case that your primary beneficiary (beneficiaries) don’t survive you.

The insurance proceeds would be disbursed to one of the following:

• The legal guardian of the minor’s financial assets (this may vary from the minor’s natural guardian)
• The adult responsible for the minor beneficiary’s well-being, if permitted under any applicable Uniform Transfer to Minor Act
• Prudential, which holds them until the beneficiary is legal age (based upon state law) to receive the payment

It’s important to reassess your life insurance beneficiaries after significant life events – like marriage, divorce, or the birth of a child – and you can change your beneficiary (beneficiaries) any time. You are not required to notify the original beneficiary; however, in some states, if the beneficiary you wish to name is someone other than your spouse, spousal consent may be required.