Check your life insurance beneficiary to make sure your loved ones receive your benefit
The University of Alaska offers life insurance to all employees as a financial protection for your survivors in the event of your
Employees can also purchase supplemental life insurance up to $600,000. Evidence of insurability is required for amounts more than $200,000. Employees can also supplement their life insurance coverage with accidental death and dismemberment (AD&D) insurance. This benefit provides additional financial protection should you die or become dismembered due to a covered accident — whether it occurs at work or elsewhere. A brief summary of your life insurance benefit options is available here.
Keeping tabs on your coverage is important. Take the case of Lilly, a beloved university professor, whose sudden death was a surprise to all. Her husband was thankful to learn of her life insurance benefit through work, as it would help pay for her funeral and the rearing of their 1-year-old daughter Grace. Unfortunately, her life insurance benefit was not top of mind when they married two years earlier. Her legal beneficiary remained her former husband, and the insurance benefit was paid to him. According to Securian Financial, the company that administers UA’s life insurance, this type is situation happens frequently.
To help avoid any legal battles or delay, and ensure your benefits would be promptly paid according to your wishes please double check your beneficiary designation today.
Here’s what you need to know about the different types of beneficiaries:
Types of beneficiaries
Your beneficiary can be a person, a charity, a trust or your estate. You can split the benefit among multiple beneficiaries.
Primary beneficiary – The person(s) named will receive the proceeds. If any named beneficiary is not alive at the time of claim, the proceeds are split among any remaining primary beneficiaries before considering contingent beneficiaries.
Contingent beneficiary – If the primary beneficiaries are no longer living, the proceeds are paid to this person or persons.
Default beneficiary – If you do not name a beneficiary or no named beneficiary is alive at the time of a claim, proceeds are paid to the default beneficiary listed in the certificate of insurance. We strongly encourage you not to rely on the default beneficiary. Rather, specifically designate a beneficiary and keep it up to date as life progresses.
UA life insurance benefits will be paid to the beneficiary you name on the Beneficiary Designation Form. You may change your beneficiary at any time by updating your form online.
Learn more and watch a brief video here.