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Life Insurance Beneficiaries: Basic Information

When you enroll in a life insurance policy, you can designate a beneficiary or add one later at any time. The beneficiary will be able to claim the life insurance benefit from the carrier in the event of the policy holder’s death. Here is some info to keep in mind before you choose your beneficiaries:

  • Beneficiaries must be 18 or older to claim a life insurance benefit. If you designate a minor, they must be over 18 at the time of the claim or have a designated guardian and trust set up through your state court (Gusto will not take care of this on your behalf).

  • You can have up to 5 beneficiaries on your account and assign varying percentages to each of them (i.e. Brenda gets 80%, Brandon gets 20%).

  • There are certain rules and regulations about who you can list as your beneficiary—like age and where they live—which vary by carrier and state. We’ll keep the beneficiaries that you provide on record, but you'll need to make sure that your beneficiaries are eligible to receive the benefit directly with your insurance carrier.