A great alternative is to cover the importance of reviewing beneficiary designations. It’s a benefit topic that is often overlooked but can have a significant impact on employees and their families.
Employee Benefits Need-to-Know: Have You Reviewed Your Beneficiaries Lately?
When was the last time you reviewed the beneficiaries on your employee benefits? If you can’t remember, now is a great time to take a few minutes to check them.
Why Beneficiaries Matter
Your beneficiary designation determines who receives certain benefits, such as life insurance and retirement account funds, if something happens to you. These designations often override what is written in your will, making it important to keep them up to date.
When Should You Update Your Beneficiaries?
Life changes happen, and your beneficiary elections should reflect those changes. Consider reviewing your beneficiaries if you have recently:
- Gotten married or divorced
- Had or adopted a child
- Lost a loved one
- Changed your estate planning documents
- Experienced another major life event
Common Mistakes
Many employees complete their beneficiary forms during their first enrollment and never look at them again. As a result, benefits may unintentionally be paid to an ex-spouse or someone you no longer wish to receive them.
Another common mistake is failing to name a contingent (secondary) beneficiary. If your primary beneficiary is unable to receive the benefit, a contingent beneficiary provides an important backup.
A Five-Minute Task That Matters
Reviewing your beneficiary information takes only a few minutes but can provide peace of mind for you and your loved ones. It’s one of the easiest ways to ensure your benefit elections reflect your current wishes.
If you’re unsure where to review or update your beneficiaries, the Haughn Insurance team is here to help.
