Correctly naming a beneficiary for your life insurance and retirement is important. It determines who will receive your policy benefits upon your death. Under current tax law, life insurance benefits paid to a beneficiary are not taxable income. Employees are encouraged to review beneficiary designations on an annual basis or following a Qualifying Life Event.
Life Insurance and Retirement Beneficiary Review
Primary Beneficiary: The person or persons that will receive your policy benefits.
Contingent Beneficiary: If the primary beneficiary/beneficiaries are no longer living, benefits are paid to this person or persons.
Default Beneficiary: If the policy holder does not name a beneficiary, benefits are paid in the order outlined in the policy:
- to a spouse, if living, if not;
- to child(ren), if living, if not;
- to parent(s), if living, if not;
- to siblings, if living, if not;
- to their estate.
To update your life insurance beneficiary information
- Go online to www.peia.wv.gov and select “Manage My Benefits,” or
- Complete and return the Life Insurance Beneficiary Designation Form.
All life insurance beneficiary designations are maintained by PEIA. Minnesota Life does not obtain beneficiary information from PEIA until a death occurs.
To update your retirement beneficiary information:
- Go online to TIAA
Note: West Virginia State Law states that a funeral home cannot be name beneficiary of life insurance. State law also prevents the direct payment of life insurance benefits to minor children. If a minor child is named as a beneficiary for less than $10,000 of benefit, that amount can be transferred to the adult guardian. If the amount is over $10,000, the proceeds can be held with interest until the minor reaches legal age or the funds can be distributed to a person with certified letters of guardianship for the minor’s estate.
Securian Financial Group 1-877-282-1752
WVU Benefits Administration at 304-293-5700 ext. 4