Can you have more than one beneficiary on a life insurance policy?

Yes, you can name more than one beneficiary on a life insurance policy. In fact, naming multiple beneficiaries is common and often the right move. You choose how the death benefit is divided, and the insurer pays each person their designated share. Getting the structure right—who receives what, and in what order—is where the details matter.

Primary and contingent beneficiaries

Life insurance policies use two tiers of beneficiaries. Primary beneficiaries receive the death benefit first. Contingent beneficiaries receive the benefit only if all primary beneficiaries have died before you or disclaim the benefit. Most policyholders name a spouse or partner as the sole primary beneficiary, but you can split the primary tier among any number of people, organizations, or trusts. The contingent tier acts as a backup, and it is just as important to fill out properly.

How percentages work

When you name multiple primary beneficiaries, you assign each one a percentage of the death benefit. The percentages must add up to 100 percent. For example, you might designate 50 percent to a spouse and 25 percent each to two adult children. You can divide the benefit in any proportion—equal shares are not required. Keep in mind:

• Be specific: Avoid vague language like "my children equally." Name each person and assign a percentage.
• Whole percentages simplify things: Fractional percentages can create confusion during claims processing.
• Update after life changes: Marriage, divorce, births, and deaths all affect whether your current designations still reflect your wishes.
• Naming minors directly creates problems: Insurers cannot pay death benefits directly to minor children. A trust or custodianship should be set up to receive funds on their behalf.

Per stirpes versus per capita

When naming multiple beneficiaries, many insurers let you choose between per stirpes and per capita distribution. Per stirpes means that if a beneficiary dies before you, their share passes to their descendants. Per capita means the surviving named beneficiaries split the deceased beneficiary's share among themselves. This distinction matters most in blended families or when you want a beneficiary's children to inherit their parent's share. Ask your insurer or agent which options are available on your policy.

What Truscott recommends

Naming multiple beneficiaries gives you flexibility, but an outdated or vague designation can send money to the wrong people—or into probate. A Truscott policy checkup reviews your current beneficiary designations, identifies gaps like missing contingent beneficiaries or improperly named minors, and helps you update your policy so your wishes are carried out exactly as intended. Reach out to make sure your coverage works the way you planned.