The start of the new year is the perfect time to update your beneficiaries for your life insurance coverage. Please log into Oracle Fusion, select ME, click the Benefits tab, quick actions on the right, then change beneficiaries. Be sure to save/submit your designations.
Choosing who will receive your life insurance policies is a decision you should consider carefully, because a beneficiary designation can’t be changed or corrected after you’re gone. Make sure your benefits go to who you want to receive them.
Primary and contingent beneficiaries
There are two types of beneficiaries: primary and contingent.
A primary beneficiary is the person (or persons) first in line to receive the death benefit from your life insurance policy. You must designate the percentage you would like each beneficiary to receive.
In the event your primary beneficiary dies before or at the same time as you, you can name a contingent beneficiary. If the primary beneficiaries are all deceased, the contingent beneficiaries receive the death benefit.
What happens if I don't name a beneficiary?
If you don’t designate a beneficiary, it can delay the benefit payment. The Hartford group term life insurance policies have a default order of payment if you do not name a beneficiary. The order typically starts with your spouse, then your children, then your parents, and then your estate.
Naming minors as beneficiaries
Children under age 18 can be named as a primary or contingent beneficiary. However, if you were to die while they are still minors, the proceeds may be sent in their name to the legal guardian of the minor child's estate.
When to update your beneficiaries
Beneficiary changes are often overlooked following divorce, remarriage, a new birth or after the death of a loved one who may be listed as one of your beneficiaries.
After your initial update, an easy way to remember to keep your beneficiaries up to date is to review during annual benefits open enrollment to revisit the details of your accounts and insurance policies. It's important to keep your beneficiary designations up to date as your life changes.