How to name beneficiaries and fund a trust at Physicians Mutual

A trust can be named as primary beneficiary, written as the trust name and its execution date, with a copy of the trust attached.¹

Physicians Mutual recommends against naming a funeral home as primary beneficiary. Where one is named, company policy requires a contingent beneficiary; the funeral home is paid only to the extent of its interest and the remainder goes to the contingent beneficiary.¹

Percentage allocations must total 100 percent among the primary beneficiaries, and again among the contingent beneficiaries.¹

The policyowner signs the form, and the insured also signs if the insured is a different person.¹

The form has a signature line for an irrevocable beneficiary, where there is one.¹

Completed by the policyowner. Available to download.¹

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Beneficiary changes are made by mail on form LX14. Physicians Mutual does not accept them online or over the phone.²

To name a beneficiary irrevocably, the owner writes "irrevocable" after that beneficiary's name. An irrevocable beneficiary cannot be changed without that beneficiary's written consent.¹

Death proceeds cannot be paid to a minor child. Physicians Mutual requires a trust or a guardianship to be in place for a minor to receive proceeds, and discourages naming minors as primary beneficiaries.¹

Form PMA2436 pledges a policy as collateral without transferring it outright, and reserves to the owner the right to designate and change the beneficiary.³

The guidelines sent with form LX511 say Physicians Mutual does not allow ownership changes involving entities such as corporations, LLPs or investors.⁴

In Maryland, a funeral home cannot be named as beneficiary.¹

In Michigan, a funeral home cannot be named as beneficiary.¹

In Montana, a funeral home cannot be named as beneficiary.¹

In New Jersey, a funeral home cannot be named as beneficiary.¹

In Oklahoma, a funeral home cannot be named as beneficiary.¹

In Pennsylvania, a funeral home cannot be named as beneficiary.¹

In South Dakota, a funeral home cannot be named as beneficiary.¹

In Texas, a funeral home cannot be named as beneficiary.¹

In West Virginia, a funeral home cannot be named as beneficiary.¹

A trust can be named as primary beneficiary of a policy on form LX14, or made the owner of a life policy by absolute assignment on form LX511. The two forms go to different addresses.^{1, 4}

Available to download.¹

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For life insurance policys. Available to download.⁴

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Where the owner is a trust, form LX511 requires the signature of all trustees as authorized by the trust documentation.⁴

Outside juvenile life policies, a change of ownership does not change the beneficiary designation on file, so the death benefit stays with the existing beneficiary unless the LX511 beneficiary sections are also completed. On juvenile life policies the new owner becomes the beneficiary unless they name someone else.⁴

The new owner is responsible for the premium.⁴

A change of ownership revokes existing automatic payments.⁴