During this time of year, I like to take a moment to thank all our life claims examiners who provide empathy, compassion, and professionalism while guiding Clients and beneficiaries through times of tragedy and loss. Having been in the claims industry for much of my career, I know it’s not an easy job, but you all do it with grace and care.
I’m also reminded, as annual enrollments begin, that this is a great time for HR professionals to remind their employees to review their beneficiary designations. Employees choose their life insurance for a good reason. By not electing or updating their beneficiary information, it can complicate who and where their life insurance benefit goes to.
Here's my short list of tips and reminders you might consider sharing with your employees.
- A beneficiary can be anyone from their spouse to their children or a close friend. They can even designate an organization that’s meaningful to them, like an animal rescue shelter.
- When selecting multiple beneficiaries, they should think about the percentage of benefits they want to leave to each, like 50% to their spouse and 25% to each child. Your employees should check their state guidelines to see if they have any specific guidelines to follow when naming beneficiaries.
- They should consider what they want to accomplish with the benefit. Do they want to help their spouse be financially sound as they retire, or help to pay off a mortgage, their children’s education or weddings? This could be their way of participating in a special life event when they can’t be there physically.
- If they want to designate a minor as a beneficiary, they should appoint a guardian. This also applies if they have an adult child with a disability who needs to be cared for.
- They should review their beneficiary information during annual enrollment or when big life events happen, such as the birth of a child, children becoming adults, marriages, divorces, or the passing of a loved one. This will help ensure their benefit is going to the right people or places.
- Finally, they should make sure their beneficiaries are aware of their plans. Letting their loved ones know they are beneficiaries will help with a smoother claim process if the worst-case scenario was to happen.
Sun Life Assurance Company of Canada, Wellesley Hills, MA. For New York group policies: Sun Life and Health Insurance Company (U.S.), Lansing, MI.
LSC-10355 #1496526646 09/24 (exp. 09/23)
