How to name beneficiaries and fund a trust at Aetna

Group life beneficiary changes run through the employer's HR or benefits department, not directly through Aetna. Aetna's claim form asks the employer to confirm a designation is on file and to explain if it is not.¹

Aetna accepts as the designation of record a "Most Current Beneficiary Designation Form, Card, or Electronic Screen-print that names the insured's beneficiaries," on file with the employer or Aetna.¹

A trust can be named as beneficiary of group life coverage.²

At claim time, Aetna's current GC-1373-14 checklist tells a trust beneficiary to provide "a Copy of the Trust, Any Amendments to the Trust, and the Trust Tax ID number."¹

The older GC-1373-4 revision Aetna still publishes asks instead for "copies of trust and letter of acceptance from trustee with Trust ID number."³

If the estate is the beneficiary, Aetna requires Letters of Administration or Letters Testamentary naming the administrator or executor, plus the estate EIN.²

Primary and contingent beneficiaries are named with percentage allocations totaling 100%.²

For life insurance policys. Completed by the insured, through the employer's HR or benefits department. Sent by the institution on request.⁴

Beneficiary designations override the instructions in a will.²

If no beneficiary was named or none survives the insured, and the policy provides for payment to next of kin, Aetna requires a notarized Aetna Affidavit of Sole Survivors completed by a family representative.²

Children under 18 cannot receive benefits directly. Aetna requires the minor's birth certificate and Social Security card, and Letters of Guardianship or conservatorship of the estate of the minor child.²

Aetna's claim form asks whether a funeral home or cemetery assignment of the benefit exists, and states the assignment should include Aetna's name and the control or policy number.¹

Group term certificates cannot be retitled to a trust; only the beneficiary can be changed to one.²

For life insurance policys. Sent by the institution on request.²

A converted individual policy can be owned by an irrevocable life insurance trust through an assignment of ownership. Aetna's claim forms ask for a copy of the assignment at claim time.^{1, 3}