The beneficiary designation and identities stated in a life insurance clause deserve careful review. The starting point is simple: find the applicable clause, check that it reflects your wishes and examine the information used to identify the people named. If a change seems necessary, first check whether a beneficiary has accepted the designation and whether consent is required.
This guide provides information to help you prepare for this review. It does not replace an examination of your contract or advice tailored to your situation, and it does not provide a personalised clause.
What is the beneficiary clause for?
The beneficiary clause is the clause in a life insurance contract that allows the person or people who will receive the capital or annuity after the insured person’s death to be named. It appears on the enrolment form in the original contract or in an amendment if it is changed after signing.
For your review, look for the version that takes any changes into account. It is useful to distinguish what is actually stated in the document from what you want today. An intention known to those close to you does not remove the need to check the contract clause.
When you take out a life insurance contract, you are most often both the policyholder and the insured person. In that case, your death triggers payment of the capital or annuity. If the roles are separate in your contract, keep this distinction in mind during your review: it matters in particular for the consents needed to make a change.
Review identities and allocation
Start by noting the people named and ask yourself whether they still reflect your intentions. Then look at the identity details and contact information in the document. The practical question is whether the available information makes it possible to identify the people you wish to name, without confusing your intention with what is actually written.
For a change made by letter, Service Public states that the document may contain the contract references, the full identity and address of the new beneficiaries, and the allocation of the capital among them. For a change made by will, Service Public specifies, among other things, the new beneficiaries’ customary surname and birth surname, given name or names, full address, date and place of birth.
These details are useful checkpoints when preparing your discussions; they do not constitute a model clause here. Review the surnames and given names, then compare the contact details and other identity details with the information you have. If several people are involved, also examine the proposed allocation. Note down your questions before contacting the contract administrator or seeking advice.
When should you consider an update?
It is up to you to check that the beneficiary clause still reflects your wishes. Service Public suggests considering an update if your family situation changes or if one of your beneficiaries dies before you.
A review can start by comparing the document with your current situation: are the people mentioned still those you wish to name? Have the identity and address details available to you changed? Does the allocation still reflect your intention? These questions help prepare for a possible course of action, without assuming that a change is necessary in every case.
Before acting, also check who is the policyholder and who is the insured person. The ability to change the clause and the consents to obtain depend in particular on whether the designation has been accepted and, in some cases, on the distinction between these people.
Check acceptance before making changes
As long as the person you have named as beneficiary has not accepted the designation, you can freely change the beneficiary clause at any time and as often as you wish. The insurer cannot object to your request for a change.
However, when the policyholder and the insured person are two different people, changing the beneficiary designation also requires the insured person’s consent. If your contract separates these roles, take this into account before preparing your request.
Once the person named has accepted the beneficiary clause in their favour, the clause becomes irrevocable. You can no longer change the name of the beneficiary of this contract without their consent. The beneficiary may accept the designation, but only with the policyholder’s consent.
Before requesting a change, therefore, look for documents relating to the clause and any acceptance of it. If you are unsure about the status of your contract or the consents required, ask the administrator rather than assuming that you are free to make the change.
Prepare a change with the administrator
The beneficiary clause can be changed, in particular, by an amendment or a will. To draw up an amendment, Service Public says to contact the bank or insurance company that administers the contract, by telephone, email or through the customer portal.
To prepare for this discussion, gather the contract references, the clause you have and information about the people you are considering naming. Specify the allocation you wish to examine and raise any questions about acceptance or the roles of policyholder and insured person. Then ask the administrator how to proceed in your situation.
You can send the administrator a dated and signed letter containing the contract references, the full identity and address of the new beneficiaries and the allocation of the capital to be made among them. Once the change has been made, Service Public recommends keeping an acknowledgement of receipt from the insurer or a copy of the amendment containing the new clause as a precaution.
If you are considering a will
Service Public states that the will may refer to the contract references, revoke the previous beneficiary clause and name the new beneficiaries while specifying the allocation of the capital among them. It specifies the identity details to include: customary surname and birth surname, given name or names, full address, date and place of birth.
It is strongly recommended that you inform the insurer of the existence of the will that changes the contract. According to Service Public, this helps prevent the insurer from mistakenly paying the capital to the contract’s original beneficiary. If the insurer has paid the capital in good faith to the beneficiary listed in its records, there is no possible recourse against the insurer to recover the funds.
For the drafting of a specific beneficiary clause in a will, you can seek advice from a notary. The notary will check the validity and effectiveness of the clause and can keep your will in safekeeping if you wish.
Where legal protection applies
If the policyholder has lost legal capacity, the change must be made with the assistance of their curator if they are under curatorship, or authorised by the judge if they are under guardianship. If they are subject to family authorisation or a future protection mandate, the measures provided for acts of disposition must be followed.
In these situations, have the applicable procedures and consents checked before changing the designation. The purpose of the review remains the same: compare the clause with your wishes and the identity information available to you, then prepare a request suited to the framework of your contract.
