Life insurance beneficiaries explained
What is a life insurance beneficiary? Find out everything you need to know about beneficiaries, putting life insurance into a trust, and more. For general information only; not specific to Vitality products or services.
What is a life insurance beneficiary?
When you’re taking out a life insurance policy, the insurance company will ask you to name your life insurance beneficiary. A beneficiary is the person or people who receive your life insurance payout when you die. You can choose whoever you want to be the beneficiary.
You usually name your life insurance beneficiary when you take out the policy or by placing the policy into a trust. If the policy isn’t written in trust, the payout will normally form part of your estate and be distributed in line with your will (or intestacy rules if there is no will).
With many joint policies, the payout is typically made to the surviving policyholder on first death. However, this depends on how the policy is set up.
Learn more: Single or joint life insurance – which is better?
Who can be a life insurance beneficiary?
Sometimes people assume the beneficiary has to be a spouse or children. But it can be anyone. It could be a long-term partner, a grandchild, a sibling, a relative, or a close friend. You can even choose charitable organisations.
Deciding who will be your life insurance beneficiary is a big decision. Sometimes, it’s obvious who you’ll choose, but other times, it’s worth thinking about. Don’t let anyone pressure you into naming beneficiaries if you’re unsure.
If you name a child as your beneficiary, the payout will usually be held on their behalf until they turn 18. A trustee or guardian will manage the money in the meantime.
How many beneficiaries can be on a life insurance policy?
You can usually name one or more beneficiaries, depending on your insurer. If you choose more than one, you’ll need to specify how the payout will be split.
For example, if you have a spouse or civil partner and two children, you might give your spouse 50% and each of your children 25%.
Learn more: Life insurance payouts explained
Can life insurance beneficiary be based in another country?
It’s possible to name a non-UK resident as a life insurance beneficiary. But there are some things to keep in mind. These include policy terms, tax implications, and whether the person entitled to receive the payout has a UK bank account.
It’s a good idea to discuss these things with your insurer. You can also consult with a tax advisor to ensure that all aspects of the policy are fully understood.
Can I change life insurance beneficiary?
Your policy term can last for a very long time. Or even your entire life if you have a whole of life insurance policy. A lot of things can change during that time. You may get divorced or have children or grandchildren. You may want to change the life insurance beneficiary listed on your policy for any reason.
Whether you can make this change depends on if you’ve named revocable or irrevocable beneficiaries.
You can remove a revocable beneficiary from your life insurance and replace them with someone else. All you need to do is request the form from your life insurance company.
But, if you named an irrevocable beneficiary, the only way to change them is to complete the form and get their written consent.
Who gets a payout if there is no life insurance beneficiary?
You can usually name one or more beneficiaries, depending on your insurer. If you choose more than one, you’ll need to specify how the payout will be split. If you die without a will, your estate will be divided according to intestacy laws.
Learn more: What is Estate Planning?
Do life insurance companies contact beneficiaries?
A claim must usually be made; the insurer will not automatically pay out unless they are notified of the death. If you’re taking out a life insurance policy, it’s a good idea to tell your family and trustees and give them your plan number. They will have to contact the provider when you die and provide evidence of your death.
How is life insurance paid out to beneficiaries?
Life insurance claimants receive the payout in a single lump sum. But first they need to tell the insurance provider you have died and provide a death certificate. They’ll then need to complete a claim form and provide details of the life insurance policy.
If the plan was not placed in trust, the payout is first paid into an account held by the executor of the will. That’s the person who handles the administration of the estate.
The executor will distribute the money from the estate to the beneficiaries named in the will, once they have Grant of Probate. You may find it useful to refer to the GOV.UK bereavement guide for more information.
Learn more: How to appoint an executor of a will?
*VitalityLife Claims and Shared Value Report 2025Vitality life insurance
Want to know more about life insurance or thinking about taking out a policy? Here are some of the benefits of taking out life insurance with Vitality:
- A brand you can trust - In 2024, we paid 98.9% of all Life Cover claims.*
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- You're not alone in choosing Vitality. Over 2 million lives in the UK are now covered by our insurance, and we’re here to support you too.
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