Life Insurance Beneficiary Designations

[Guest benefitsanalyst]

Are there any legal issues in obtaining life insurance beneficiary designations electronically?

[GBurns]

There should be. Some states require the actual signing of insurance applications and all forms. As a result, many companies require an actual signature, even if the agent keeps it on file and sends the application electronically to the insurance company.

But for prudence, How would you protect yourself against a claim of error or a dispute, if you do not have an actual signature?

What does your state insurance law require?

[Kirk Maldonado]

In addition to the issues that GBurns mentioned, you need to consider what the plan document (if one exists) and/or the summary plan description require.

If they conflict with the insurance contract, then you have a real problem on your hands. I've never researched this issue, but having read summaries of a number of cases, my recollection is that the courts have not been uniform in the way that they have handled this issue. If anybody can provide a more definitive answer on this point, please jump in.

[Guest Ry Benefits]

This is also regulated by the states. A few states have approved electronic signatures for insurance forms, but to my knowledge only a few have provided approval.

[Mary C]

Our insurance carrier (MetLife) requires a spouse signature to change the beneficiary in community property states if the beneficiary is anyone other than the spouse. While we do accept electronic beneficiary designations, we have not figured out how to do the spouse signoff electronically and require a paper form with signatures in these cases.

[oriecat]

Hmm, that's interesting. We have MetLife too and I am not aware of any beneficiary restrictions. I better look into this...