Beneficiaries Guide

Naming Beneficiaries for Jointly Owned Fixed Annuities

This guide will help you understand:

• When a claim is payable on a Jointly Owned NYL Fixed Annuity
• How to best name beneficiaries to achieve your client’s stated wishes
• What NYL does when beneficiaries are not named on a new application
• What NYL does on a Jointly Owned policy when “Surviving Spouse” is not named as the beneficiary on the application

When is a Claim Payable on a jointly owned NYL Fixed Annuity?

NYL Fixed Annuities are considered “first to die” products. This means a claim is payable on jointly owned policies when one owner dies. It is important to understand the ramifications of your client's beneficiary choices in regards to this feature.

To learn more about when a claim is payable on a NYL Fixed Annuity, please see our Death Claims Guide that describes most other potential scenarios.

When Joint Spouses on a NYL Fixed Annuity choose their beneficiaries

• If they name the Surviving Spouse as the Beneficiary: 
  • Upon the death of either Owner, the Surviving Spouse will be able to continue the policy.
• Naming Someone other than the Surviving Spouse as the Beneficiary: 
  • If either owner dies, the surviving spouse will not be able to continue the policy.
  • If either owner dies, the death benefit will be paid to the named beneficiary (not the joint owner), and the policy will terminate.

How to Best Name Beneficiaries to Achieve your Client's Stated Wishes

If your clients are choosing to jointly own a fixed annuity ask them the following question:

“When one of you passes away do you intend for the funds to be retained by the surviving spouse or is there another beneficiary(ies) that you would like to receive the funds at that time?”

If they answer:

“We want the spouse who survives to retain the funds.”

Then:

For the primary Beneficiary, please select the exact phrase “Surviving Spouse.”
(Similarly, for Joint Non-Spousal Owners they should select “Surviving Owner.”)

If they answer instead:

“We want our children, or friend or charity, etc. to receive the funds”

Then:

For primary Beneficiary designation, please select the name of the individuals, or non-living entities, (charity trust, etc.) whom they would like to receive the funds.

PLEASE BE AWARE: NAMING ANY ENTITY OTHER THAN “SURVIVING SPOUSE” WILL MEAN THAT UPON THE DEATH OF EITHER OWNER, THE SURVIVING OWNER WILL HAVE NO RIGHTS TO THE FUNDS!

What does NYL do with an Application Lacking Named Beneficiaries?

If there are no other errors or omissions on the application, NYL will issue the policy using the following default designations based upon the ownership type of the policy and send the client an amendment:

What does NYL do on a Jointly Owned Policy when “Surviving Spouse” is Not Named as the Beneficiary on the Application?

When NYL receives an application for a Fixed Annuity owned by Joint Spouses we automatically mail out the “Disclosure Form for Joint Spousal Ownership.” This form explains to the clients the ramifications for naming/not naming “Surviving Spouse” on their policy. The form also contains a section where the clients can choose to make a beneficiary change.

Clients may also make changes to beneficiaries on the Ownership/Beneficiary Change Form For New York Life Fixed Annuities.

New York Life fixed annuities are issued by New York Life Insurance and Annuity Corporation (NYLIAC), a Delaware corporation, a wholly owned subsidiary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.  Guarantees are backed by the claims-paying ability of the issuer.  Products available in jurisdictions where approved. 

For Financial Professional Use Only.