INSTRUCTIONS and SAMPLE DESIGNATIONS for CHANGE OF BENEFICIARY FORM
Call us at 800.779.5433, Ext. 2816, for help in wording your beneficiary designation if needed.
(Hours 7:30 a.m. to 5 p.m., M-F, Central time)
Important instructions in completing this form:
If you are designating a trust, minor child or need special wording due to a legal document (i.e. power of attorney, divorce decree), please see the examples below. For additional questions, call us for assistance with the wording.
The OWNER of the policy must sign the form in order to process the change. (If multiple owners, all need to sign.)
Death proceeds of your contract are payable upon the death of the insured/annuitant; therefore, the insured/annuitant CANNOT be listed as the beneficiary.
If adding names to an existing beneficiary designation, you will need to restate the entire designation.
If you are a resident of AZ, CA, ID, NV, NM, TX, WA, WI, your spouse may have a legal claim for a portion of the death proceeds under your state’s community property law if you name someone other than your spouse as beneficiary. It may be in your best interest to have your spouse also sign this form to waive his/her right to any community property interest in the death proceeds. If spouse signature is not received, there may be a delay in paying out a death claim.
If a resident of MA, the law requires the owner’s signature be witnessed by a person not named as beneficiary.
Any deletion or alteration on the completed form must be initialed by the policyowner in order for us to process.
Return the completed form to CMFG LIFE INSURANCE COMPANY, P. O. Box 61, Waverly, IA 50677 or fax to 608.236.8030.
Keep a copy of the completed form for your records.
These beneficiary designations are only suggestions. To determine the legal implications of these designations in your state, you may want to consult with your attorney.
What happens if I don’t name a valid beneficiary or all of my beneficiaries precede me in death? Proceeds will be paid out according to the contract provisions, or if not specified in the contract, to the insured’s estate.
What happens to the proceeds if my children are minors when I die? Proceeds payable to a beneficiary who is a minor child will be held at interest by the company until attainment of legal age, or until a financial guardian is appointed by the courts authorizing payment in the child’s behalf. If the intent is to benefit your child(ren), list your child(ren) to receive the proceeds. Example: Adam T. Doe, 000-00-0000, 11-5-98, son.
How do I designate my beneficiaries to share equally? If naming multiple beneficiaries, the proceeds will be paid out EQUALLY to all surviving beneficiaries (unless percentages or fractions are used). If there are no surviving primary beneficiaries, proceeds shall be divided between all surviving contingent beneficiaries. Example: Ray B. Doe, 000-00-0000, 1-1-50, son; Alan B. Doe, 000-00-0000, 2-1-52, son.
Can I use percentages or fractions in my designation? If you do not want the proceeds divided equally, percents or fractions can be used to indicate how you want the proceeds paid. Check that percents add up to 100% or fractions add up to 1. If any of the primary beneficiaries predecease you, that person’s portion will be split among the surviving beneficiaries in proportion to their percentage/fraction. Example: John A.
Doe, 000-00-0000, 1-1-50, son, 40%; Mary D. Smith, 000-00-0000, 2-1-51, daughter, 40%; and Thomas A. Smith, 000-00-0000, 4-30-00, grandson, 20%. In this example, if John predeceases the insured, then Mary and Thomas would receive John’s portion according to their
percentages/fractions.
How can I designate the descendants of my beneficiaries to receive the proceeds if the primary beneficiary predeceases me? You may either name a contingent beneficiary for each primary beneficiary designation OR you may add the term “per stirpes” after each beneficiary to indicate you want their descendants to receive the primary beneficiary’s portion if he or she predeceases you. Example: John A.
Doe, 000-00-0000, 1-1-50, son, 50%, if living otherwise to Charles S. Doe, grandson; and Mary D. Smith, 000-00-0000, 2-1-51, daughter, 50%, if living otherwise to Thomas A. Smith, grandson. In this example, if John predeceases the insured, then Charles would receive John’s portion (50%) and Mary would still receive 50% of the proceeds.
Can I include dollar amounts for each beneficiary? Listing only dollar amounts for each beneficiary cannot be accepted because the death proceeds often do not exactly match the designation amount, depending on the product (due to investment experience, interest earnings, unpaid premiums, dividends, outstanding loans, etc.). It is difficult to determine which beneficiary(ies) should receive the excess or shortage compared to the designated amount. To designate different amounts for multiple beneficiaries, use PERCENTS or FRACTIONS instead. Another option is to include a combination of both dollar amounts and percents/fractions or “balance” to specify an organization, charity or person to receive a certain dollar amount. Example: $6,000 to ABC Church, $2,000 to XYZ Charity, and the balance to be shared equally among Susan A.
McDonald, 000-00-0000, 5-3-70, daughter and Michael F. Edwards, 000-00-0000, 9-20-75, son.
How should I designate the trust I have set up with my attorney? Include the name and address of the current trustee, name of the
trust and the date of the trust. Example: John Doe and Mary Doe, Trustees of the Doe Family Living Trust dated 1-1-96, 123 City Street,
Yorktown, PA 12345.
How should I designate the trust set up as a part of my Last Will and Testament? In this case, do not include the date of the will as it may change due to future updates. At the time of a claim, we will pay the proceeds according to the trustee as stated in the most recent Last Will and Testament. Example: Trustee as provided under the Last Will and Testament of James A. Doe.
How can I designate a funeral home as beneficiary? Each state has different regulations so check with your attorney for restrictions. If allowed, be aware that funeral homes can change names and locations. If the funeral home’s interest is less than the death proceeds and they are listed as the only beneficiary, they are under no obligation to give any remaining funds to your family or estate.
How can I designate a charity or organization? Include the complete name and address of the charity or organization.
