Life policy beneficiaries are in the know

Nationwide Financial Services, Inc. recently surveyed life insurance policyholders and found that the vast majority have informed their beneficiaries of the designation. That’s the good news.

The bad news? Many have neglected some important facts and changes that could impact how quickly the payout is made and to whom.

According to the online poll, conducted by Harris Interactive, of 805 life insurance policy owners across the U.S., 91 percent said their beneficiaries knew of the designation, while 85 percent said they had talked with their beneficiaries about the policy. Seventy percent said they are confident their beneficiaries would know how to file a claim.

However, one in five policy owners related that have yet to forward their beneficiaries’ up-to-date contact information to the insurance company. What’s more, most policyholders-57 percent-who have talked to their beneficiaries about the policy have not told them where the policy is actually located. More than half (55 percent) of policy owners did not change their beneficiary after a divorce.

Leaving out these vital facts could delay payment, warned Peter Golato, senior vice president of individual protection for Nationwide Financial.