How do I choose my life insurance beneficiaries?
Choosing your life insurance beneficiaries comes down to both eligibility rules and making sure your wishes are clearly documented.
If your policy is inside super (superannuation), there are strict rules on who you can nominate. Generally, eligible beneficiaries include:
- Your spouse or de facto partner
- Your children (including step or adopted children)
- Financial dependants
- Someone in an interdependency relationship with you
- Your legal personal representative (estate)
You can usually nominate one or multiple beneficiaries, and most policies let you:
- Split the benefit by percentages or fixed amounts
- As long as the total adds up to 100%
If you don’t nominate a beneficiary, the payout may go to your estate, which can:
- Delay payments
- Lead to legal fees
- Potentially cause family disputes
It’s also important to know:
- The policyholder can update beneficiaries
- You’ll need to be legally competent and may need to complete forms or provide ID
- In some cases, spousal consent is required
Tip: Review your beneficiaries regularly—especially after major life events like marriage, divorce, or having children—to make sure everything still reflects your wishes.
