Note: This article is for HR Admins. If you're not an HR Admin and want to learn more about the beneficiary form process, check out this article.
Some insurance carriers require separate beneficiary designations for Optional Life and Optional Accidental Death & Dismemberment (AD&D) benefits. There are two possible scenarios:
All benefits are included on the same beneficiary form, which includes multiple sections to designate beneficiaries.
The basic and optional benefits exist under two separate policy numbers within the group plan.
In the first scenario, this requirement will be outlined on the beneficiary form. One beneficiary form is required, but both sections must be completed.
In the second scenario, if the basic and optional benefits exist on two separate policies with the carrier, the employee may be required to submit two separate beneficiary forms - one for each policy.
If a beneficiary is designated for basic benefits, it isn't assumed that they are also designated for optional benefits by default. It's very important for the employee to follow the guidance above to ensure they are properly designating beneficiaries for all basic and optional benefits.