Washington Life Producer Practice Exam

What is typically required to change a beneficiary on a life insurance policy?

1. Written consent from the original beneficiary

2. A new application form

3. A letter to the insurance company

4. A change of beneficiary form

The correct answer is: A change of beneficiary form

To change a beneficiary on a life insurance policy, it is necessary to complete a change of beneficiary form. This form is specifically designed to capture the necessary information regarding the new beneficiary, ensuring that the insurance company updates its records accurately. By using this form, the policyholder can clearly indicate the desire to change the beneficiary and provide the required details for the new individual or entity. This process is crucial because it helps prevent disputes or confusion about who is entitled to receive the benefits upon the policyholder's death. The use of the designated form streamlines the administrative process for the insurance company, making it easier for them to process the change properly and securely. While there may be other requirements based on specific policy terms or company practices, the completion of a change of beneficiary form is the standardized method recognized across the industry.