Beneficiaries

1. Beneficiaries

2. Beneficiaries What is a Beneficiary? Person named by the participant in an insurance policy or pension plan to receive any benefits provided by the plan if the participant dies.

3. Beneficiaries • Why is naming a beneficiary important? • Peace of mind knowing Deseret Mutual will release your information to that person or persons • Assuring your money goes where intended • To avoid potential legal battles

4. Primary Beneficiaries A primary beneficiary is a person or entity designated as the first in line to inherit assets. The beneficiaries will inherit the assets immediately upon the account holder's death, without going through probate court and regardless of the dictates of the participant’s will. • Example: Spouse is usually named as primary beneficiary, however you can also name any adult over the age of 18 if you do not have a spouse.

5. Secondary Beneficiaries The person or persons named to receive benefits if the primary beneficiary is not alive upon the death of the insured or if the primary beneficiary does not collect all benefits before his or her own death.

6. Beneficiaries • Which Deseret Mutual insurance plans require beneficiaries? • Group Term Life Insurance • Supplemental Group Term Life Insurance • 24-Hour Accidental Death & Dismemberment • It is important to name primary and secondary beneficiaries.

7. Beneficiaries • Beneficiaries for your life insurance plans can be: • Family • Friends • A Trust • If minor children are named, a guardian must be named or one will be appointed through court proceedings. If one is not appointed, Deseret Mutual will hold the funds at simple interest until the minor is of age and requests the payment.

8. Beneficiaries • Which retirement savings plans require beneficiaries? • Deseret Mutual Thrift Plan • TIAA-CREF SRA/RA • TIAA-CREF Roth IRA • It is important to name primary and secondary beneficiaries.

9. What if you do not have a spouse? • Your child or any adult the age of 18 or older can be named as primary beneficiary. • You may also consider naming a secondary beneficiary, for example, a trust, family, or friend

10. No Beneficiary Named Life insurance proceeds are paid to the estate of the deceased person.

11. No Beneficiary Named • Retirement savings proceeds from Thrift and TIAA-CREF are paid: • ½ to the surviving spouse • ½ to the estate If there is not a surviving spouse then 100% of the proceeds are paid to the estate.

12. Master Retirement Beneficiaries for the BYU Master Retirement Plan cannot be designated until you are ready to begin receiving benefit payments and have submitted the necessary paperwork.

13. Master Retirement • Master Retirement proceeds are paid according to the payment option you chose when you began receiving the benefit. • If you do not have a beneficiary named, your benefits will be paid out to your estate. This will result in filing paperwork with the court…a lengthy and tedious process.

14. Retirement Savings • Beneficiaries for your Retirement Savings: • Your current spouse • Any person or persons • A Trust (some limitations apply) • Any other entity, such as a charitable organization. However, you cannot name your employer or your estate as your primary or alternate beneficiary. • If you chose to name a beneficiary other than your spouse, including a trust, there needs to be a spousal written, notarized consent. You and your spouse must sign the Waiver Election form. • If your marital status changes, your previous beneficiary election may become invalid.

15. Beneficiaries How are beneficiaries paid? If a beneficiary is named, benefits are paid out to them immediately upon the receipt of the Death Certificate.

16. Beneficiaries You may change your beneficiaries at any time on the Deseret Mutual website www.dmba.com • Life Events are main reasons for a beneficiary change, they are: • Marriage • Birth/Adoption • Divorce • Death

17. Beneficiaries Be proactive. Don’t wait until its too late. Complete or update your primary and secondary beneficiaries, either on-line with Deseret Mutual or visit the Benefits Office. Go to: • www.dmba.com • Log in • Choose “My Benefits” • “Change My Enrollment” • “Things you can change online”