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Employees have life insurance to protect their families financially in the event of their death. Most people file away this paperwork for safekeeping but fail to review their beneficiary information every few years. After all, who wants to think about their own death? It’s human nature.
As a benefits administrator, you know how important it is that employees keep their beneficiaries up-to-date to avoid legal complications and ensure that their wishes are fulfilled. Perhaps you have heard the horror stories or experienced situations where ex-spouses received death benefits while the current spouse helplessly stood by.
What can you do to help? The first thing is to have an information sheet on hand that explains how to choose a beneficiary, along with your standard beneficiary forms from the life insurance company.
- Include the information sheet and beneficiary form at every open enrollment.
- Major life events like marriage, divorce, adoption, death or having a baby usually prompt a benefit change. When this occurs have the information sheet and form on hand for them.
- Select an annual date, preferably six months after your annual open enrollment, to distribute a quick reminder email with the information sheet and beneficiary form.
Consider making these three easy steps a best practice. It’s a small action on your part which may have a big impact in someone’s life.
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002.
“I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”