Who Can Be Your Life Insurance Beneficiary?

Summary: You can name a person, trust, charity or your estate as your life insurance beneficiary. It can be nearly anyone when naming a person, but listing minors is generally not recommended.

In this article:

Life insurance is meant to help protect the people or causes you care about most. That's why choosing the right beneficiary can be so important. Without a beneficiary, your life insurance proceeds may not go where you want them to.

While you have a lot of flexibility in who you name, there are legal and practical factors to consider, especially if you're naming a minor, multiple people or a trust or charity. With a named beneficiary, the policy can provide financial support quickly.

Without one, the funds will be added to your estate, which may mean a lengthy legal process to get to the right person. So how can you choose the right beneficiary for your life insurance? This guide explains how to make the right call and keep your policy aligned with your wishes.

Who can be a beneficiary for life insurance?

Almost anyone can be a life insurance beneficiary. In most cases, people name their loved ones, such as spouses, children, parents or siblings. They are often people who are dependent on your income so that you can provide some financial stability in the event of your death. However, it doesn't have to be a loved one or someone you want to help make more financially secure; you can name someone as a beneficiary simply because you want to.

What are the basic rules for naming a beneficiary?

While there aren't too many rules around choosing a life insurance beneficiary, there are a few to be aware of:

1The beneficiary must be a person or entity (spouse, child, estate, trust, charity).

2If you live in a community property state, life insurance beneficiary rules for a spouse typically state you must get spousal consent to name someone other than your spouse as the beneficiary.

3You must be mentally competent when naming your beneficiary.

One life insurance beneficiary rule to keep in mind is that you can't directly name pets as a beneficiary because they're considered property.¹ However, it's possible to set up a pet trust and name that as the beneficiary.

Additionally, you'll want to ensure that your beneficiary is accurately listed with the correct:

• Full legal name, as shown on official documents
• Date of birth
• Contact information (address, phone number, email)
• Social Security number (if asked for)

How old does a beneficiary have to be?

Children under the age of 18 or 21 (depending on your state) can be named as beneficiaries, but they usually can't receive the funds until they're an adult.

If naming a minor as a beneficiary, it's generally recommended to name a guardian to manage the funds until they're an adult. Alternatively, you could set up a trust for them and name the trust as a beneficiary.

If you don't appoint a guardian, the court may place the money into a state-owned trust until the child reaches the age of majority or a guardian is appointed.²

Consult with an estate planning attorney to understand your options and explore your best course of action.

What are other options for choosing a beneficiary?

Believe it or not, you don't have to choose a person as your beneficiary. Other options on who can be a beneficiary include a trust, charity or your estate.

You can name a trust as your beneficiary

A trust is a legal arrangement where an individual, commonly called a trustee, manages your assets but does not benefit from them.

A life insurance trust as a policy beneficiary receives the death benefit directly. A trustee then manages and distributes the funds according to the terms of the trust.

You can name a charity as your beneficiary

If you have a cause that is special to your heart, you can name a charity or nonprofit as your beneficiary. Your life insurance premiums may also be tax-deductible with this option.

If either of these types of beneficiaries sounds good to you, talk to a tax/legal professional for more information.

You can name your estate as your beneficiary

You can also name your estate as a beneficiary, but that's generally not recommended for two reasons:

1Your estate and assets have to go through probate, which delays your loved ones from receiving the money.

2Creditors would have access to the insurance proceeds for debt repayment if you have any outstanding debts when you pass away.

What is a contingent beneficiary for life insurance?

A life insurance contingent beneficiary, also known as a secondary beneficiary, receives the death benefit if the main beneficiary passes away, can't be found or refuses the money. Naming a contingent beneficiary may be a good idea because it's another way to ensure that your life insurance proceeds go where you want them to.

What happens if you don't have a contingent beneficiary?

If you don't have a secondary beneficiary named, and your primary beneficiary is unavailable, your death benefit would become part of your estate. The death benefit could then be subject to probate delays and creditor claims.

Who can be a secondary beneficiary?

The same rules apply to your secondary beneficiary as to your first. Call your insurance provider if you need to update your policy's beneficiaries. You'll also need to fill out a 'Change of Beneficiary' form.

Can you list multiple life insurance beneficiaries?

You can list a group of people as your beneficiary. For instance, you can have 'grandchildren of the insured' listed on your policy. This will let your grandchildren receive portions of the life insurance policy. If you want each grandchild to receive the same percentage, note that. However, you can split it in any way that you choose.

For example, one grandchild can get 60 percent while the other two receive 20 percent each.

You'll want to keep your policy up to date if you name your grandchildren as beneficiaries. Make sure your insurance company is aware if another grandchild is born. If this grandchild should be listed on your policy, let the company know.

If you plan on leaving money to multiple people, it can be helpful to estimate how much you'd like to leave to each person. From there, you determine how much life insurance you need to fulfill that goal.

What if you have a different beneficiary listed in your will?

The life insurance beneficiary on your policy needs to match the person listed in your will to receive this amount. If it doesn't match, the beneficiary designated on your policy will overrule the person named in your will.³ Double-check that all of your listed beneficiaries are updated. You don't want any confusion to arise that could cause a delay in the event of your death.

How can you change your beneficiaries?

Life happens. Call your insurance company if you need to update your beneficiaries. You'll also need to fill out a change-of-beneficiary form. Regardless, always make sure your life insurance beneficiary is up to date.

Once you decide, let designated loved ones know that they're listed on your life insurance policy. This way, they know what to do and who to contact when the time comes.

Frequently asked questions (FAQs)

What happens if you don't designate a life insurance beneficiary?

Your life insurance death benefit may become part of your estate if there are no beneficiaries on the policy. This could reduce the amount your loved ones receive because of estate taxes, creditor claims and probate fees.

Who should be my beneficiary for life insurance?

Picking your beneficiaries is a very personal decision. You may want to think about who would be most affected financially by your death, like a spouse, child, other family member or dependent, and choose someone you trust to handle the money responsibly.

When should you change life insurance beneficiaries?

Anytime your wishes for your life insurance proceeds change could be a good time to update your beneficiaries. This may happen after major life events like marriage, divorce, having kids or the beneficiary dying.

Life insurance beneficiary rules after divorce and other big happenings don't change because of the event. For example, if your ex-spouse is listed as a beneficiary, they'll receive the death benefit after your passing unless you change it.

Consult with a professional tax and/or legal advisor before taking any action that may have tax or legal consequences.

Sources

1. Policygenius. "Can you name your pet as your life insurance beneficiary?", June 4, 2024.

2. North Carolina Office of State Human Resources. "Minor Beneficiaries: What You Should Know", Accessed July 25, 2025.

3. Edelman Financial Engines. "Does a Will Override a Beneficiary Designation?", April 04, 2025.