You may have named your beneficiaries years ago and haven’t thought about them since. But as your life changes, the people you want to receive certain benefits or assets may change too.

Taking a few minutes to review your beneficiary designations can help make sure they still reflect your wishes.

Where Should You Check?

Beneficiary designations may be associated with several types of accounts and coverage, including:

• Life insurance policies
• Employer-sponsored retirement plans, such as a 401(k)
• IRAs and other retirement accounts
• Certain investment or financial accounts
• Employee benefits that include a death benefit

Because beneficiary designations can play an important role in how assets or benefits are distributed, keeping them current is an important part of your financial planning.

Life Changes Can Be a Good Reminder

Certain milestones should prompt you to take another look at your beneficiaries. Marriage, divorce, the birth or adoption of a child, the death of a loved one, or other significant family changes can all affect whom you want to name.

Even if nothing major has changed, an occasional review can help you catch outdated information.

Don’t Forget Your Contingent Beneficiaries

Many accounts and policies allow you to name both primary and contingent beneficiaries.

Your primary beneficiary is generally first in line to receive the benefit. A contingent beneficiary may receive it if your primary beneficiary cannot.

Review both to make sure your choices are still appropriate.

Keep Your Information Current

Check that names and other identifying information are accurate. If you need to make a change, contact the insurance company, plan administrator, financial institution, or other organization that maintains the account.

Don’t assume that updating your will automatically updates your beneficiary designations. These are often handled separately.

A Small Check That Can Make a Big Difference

Reviewing your beneficiaries doesn’t take long, but it can help ensure your wishes are accurately reflected.

As your life changes, make reviewing your beneficiary designations part of your overall financial and insurance checkup.

Questions? Reach out to us at 800-637-4676, info@mypip.org or request more information here.