Naming Life Insurance Beneficiaries
October 19, 2026 ยท 4 min read
The beneficiary designation on a life insurance policy usually decides who receives the money, often more directly than a will does. It is one of the simplest parts of a policy and one of the most commonly neglected.
New York licensed agent and broker
The primary beneficiary receives the benefit first. A contingent beneficiary receives it if the primary beneficiary has died or cannot be found. Naming both avoids the benefit falling into the estate if the primary beneficiary is no longer living.
A child cannot easily receive life insurance proceeds directly. Depending on your situation, families consider naming a trust, or a custodian under a state law for gifts to minors, so that someone responsible manages the money. If a beneficiary has special needs, a poorly planned designation can affect eligibility for public benefits. These are matters for your attorney, and we are glad to coordinate with one.
Use full legal names and relationships. Avoid vague wording such as "my children" when you want specific people or shares. Decide whether shares should be equal, and what should happen if a beneficiary dies before you.
Marriage, divorce, a new child, a death in the family, a new business or a move can all change who you want to name. Review your designations after any of these events and every few years in any case. A former spouse who remains named can still be paid unless the policy or the law says otherwise.
If a policy is meant to fund a buy-sell agreement, protect a business loan or pay estate costs, ownership and beneficiary choices affect how the proceeds are treated. Coordinate with your attorney and accountant. We do not give legal or tax advice.
Can I change a beneficiary?
Often yes, by submitting the insurer's change form, unless the designation is irrevocable. Check the policy.
Does a will override a beneficiary designation?
Generally no. The designation on the policy controls who is paid, which is why keeping it current matters.
By Ardi Shita, New York licensed agent and broker (NPN 22062424), The Rothswell Agency LLC. Published October 19, 2026. General information, not advice. Laws, programs and deadlines change, so confirm current details before you act.
We work in your best interest. At or before the time of application we will tell you whether we are acting as your broker or as the insurer's agent, and whether we receive compensation from the insurer. You can ask for details of our compensation at any time (New York Regulation 194).
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