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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
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General Rule: In appointing a beneficiary, the insured shall have the right to change the beneficiary he/she designated in the policy.
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Exceptions: The appointment of beneficiary becomes irrevocable:
1) upon the insured’s death provided the insured does not change the designation during his lifetime; and
2) if the right to change the beneficiary is expressly waived in the policy.
In an insurance contract, a beneficiary refers to the person allowed by law or by the terms of the contract to demand and receive the proceeds of the insurance.
In appointing a beneficiary, the insured shall have the right to change the beneficiary he/she designated in the policy. This means that the appoint of beneficiary is revocable.
However, the appointment of beneficiary becomes irrevocable (1) upon the insured’s death provided the insured does not change the designation during his lifetime; and (2) if the right to change the beneficiary is expressly waived in the policy.
The Insurance Code provides:
“Section 11. The insured shall have the right to change the beneficiary he designated in the policy, unless he has expressly waived this right in said policy. Notwithstanding the foregoing, in the event the insured does not change the beneficiary during his lifetime, the designation shall be deemed irrevocable.” (Section 11, Republic Act No. 10607, or the Insurance Code)
Question: When can the rights of a beneficiary be forfeited?
Answer: The interest of a beneficiary in a life insurance policy shall be forfeited when the beneficiary is the principal, accomplice, or accessory in willfully bringing about the death of the insured.
What is the effect of forfeiture of the rights of the beneficiary?
The law says:
“Section 12. The interest of a beneficiary in a life insurance policy shall be forfeited when the beneficiary is the principal, accomplice, or accessory in willfully bringing about the death of the insured. In such a case, the share forfeited shall pass on to the other beneficiaries, unless otherwise disqualified. In the absence of other beneficiaries, the proceeds shall be paid in accordance with the policy contract. If the policy contract is silent, the proceeds shall be paid to the estate of the insured.” (Section 12, Insurance Code)
Related article: What is the “Cash and Carry” Rule under the Insurance Code?
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