Transfer ownership of life insurance policy to spouse

What happens if you have multiple primary beneficiaries?

If there is more than one primary beneficiary, the primary beneficiaries share the death benefit equally or in a percentage determined by the insured at the time of designation . Multiple primary beneficiaries to life insurance are also called “co-beneficiaries.”

There are different types of beneficiaries; Irrevocable, Revocable and Contingent .

Any of the following individuals are considered an eligible designated beneficiary (EDB): a surviving spouse, a disabled or chronically ill individual, an individual who is not more than 10 years younger than the IRA owner, or a child of the IRA owner who has not reached the age of majority.

An eligible designated beneficiary (EDB) is always an individual . In other words, an EDB cannot be a nonperson entity—such as a trust, an estate, or a charity; these are considered not designated beneficiaries. There are five categories of individuals included in the EDB classification: The owner's surviving spouse.

What is designated beneficiary?

Beneficiary designations allow you to transfer assets directly to individuals, regardless of the terms of your will . Beneficiary designations are often made when a financial account, retirement account, or life insurance policy is established.

If you have more than one life insurance beneficiary, you can allocate how much each person or entity will receive . These are known as beneficiary allocation rules. For instance, if you have two children, you could state that each will receive 50% of the total amount.Dec 6, 2021

You can name two (or more) people as beneficiaries, outlining the percentage of the policy payout each would be given. You can also name a contingent beneficiary, who could receive the death benefit if something happened to the primary beneficiary.