Oahu, Hawaii

A Guide to Choosing Life Insurance Beneficiaries February 27, 2019

A Guide to Choosing Life Insurance Beneficiaries , Honolulu, Hawaii

When purchasing life insurance, you must not only determine the right type and amount of coverage, but also whom to designate as beneficiaries. A beneficiary is a person who will receive the policy payout in the event of your death. While deliberating over who to choose to receive the benefits of your coverage, take these following factors into account.

Designating More Than One Beneficiary 

If you only name one individual as the recipient of your life insurance death benefits, they are referred to as the primary beneficiary. You are not required to name more than one person; however, it’s recommended to designate a contingent beneficiary to receive the payout if your primary beneficiary is no longer able to accept it. Additionally, you have the option of naming multiple primary or contingent beneficiaries by dividing the benefits into separate shares. 

Naming Minors & Disabled Dependents as Beneficiaries  

life insuranceLife insurance payouts cannot be given directly to minors. Therefore, if you wish to make your children beneficiaries, you will need to either set up a trust in their name and designate it as the beneficiary or appoint an adult custodian to act on their behalf.

If you have a disabled dependent you wish to name as a beneficiary, keep in mind that doing so could make them ineligible for government assistance. To avoid this, you can establish a special needs trust. 

Revocable vs. Irrevocable Beneficiaries 

You can also designate your life insurance beneficiaries as revocable or irrevocable. A revocable beneficiary can be removed from the policy any time you choose, allowing you the flexibility to make adjustments when necessary, such as a marriage, divorce, birth of a child or grandchild, or adoption. On the other hand, an irrevocable beneficiary cannot be changed without that person’s consent. 


Although no one can select your beneficiaries for you, a life insurance consultant will provide more in-depth knowledge of these considerations to help you make an informed decision. Whether you’re looking to buy a new policy or review an existing one, Leonard Cabral of Team Elite will ensure your coverage is set up to provide you with the most value. Offering more than a decade of industry experience, he has successfully matched countless clients throughout the state of Hawaii with the products best suited for their unique situation. Call (808) 358-4992 to schedule a consultation, or visit him online to learn more about securing a financially healthy future for your loved ones.

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