Employer Group Life Insurance Beneficiary

[widow55]

My husband passed away suddenly. We were married several years ago and he has a child from a previous marriage. He has a life insurance policy through his work that was set up before we were married. He did not update his beneficiary form after we were married.

I thought that the insurance had to have the spouse as the beneficiary unless the spouse consented to not be the beneficiary. But I'm wondering, since he never updated his form after we were married, does that override the rule that the spouse must be the beneficiary?

 

[Larry Tew]

I'm sorry for your loss. There is no rule that says the spouse must be the beneficiary on group life insurance. The insured would make that choice, and would also need to make changes along the way.

The only rule I'm thinking of that might have given you this idea is the rule concerning qualified retirement plan funds in a lump sum. There are some spousal consent rules in that area, but not in the group life area.

Hopefully you will be able to have a conversation with the adult child.

 

[SherylBrown]

Larry Tew is correct. There is no law that says you must name your spouse as the life insurance beneficiary. Another important thing to consider too is a change of beneficiary made in your will does NOT override the beneficiary designation form. The insurance company will go by the beneficiary designation form upon payout.

Sheryl Brown / @AshBrokerage

 

[somarco]

Group life beneficiary can be anyone other than the employer. Insurable interest must be present at the time the beneficiary is initially named, but can later be changed to anyone, including someone who does not have an insurable interest.