--- title: [Real Life HR] How Often Should Employees Update Beneficiary Forms? description: Ensure employees update beneficiary forms annually to avoid legal disputes and ensure benefits go to the intended recipients. Learn why this HR practice is crucial. image: https://blog.ahola.com/hubfs/blog%20image%20(Website)%20(1).png --- Start typing and press Enter to search * * # [Real Life HR] How Often Should Employees Update Beneficiary Forms? [Home](https://www.ahola.com/) » [News & Events](https://blog.ahola.com/how-often-should-employees-update-beneficiary-forms) » [Real Life HR] How Often Should Employees Update Beneficiary Forms? [2025-04-22%2020:18:08](2025-04-22%2020:18:08) ![](https://blog.ahola.com/hubfs/blog%20image%20(Website)%20(1).png) ## [Real Life HR] How Often Should Employees Update Beneficiary Forms? By [ Ahola Corporation ](https://blog.ahola.com/author/ahola-corporation)  Posted [ April 22, 2025](2025-04-22%2020:18:08)  In  [Benefits](https://blog.ahola.com/tag/benefits), [Human Resources](https://blog.ahola.com/tag/human-resources), [Employees](https://blog.ahola.com/tag/employees) - - - - - # **Q: Is it necessary to have employees update their beneficiary forms? If yes, how often? ** **A:** Absolutely—maintaining current beneficiary information is one of the most critical components of benefits and 401(k) administration. Best practice is to have employees review and update their beneficiary forms annually. This practice should extend to any benefit plan that provides a monetary-value benefit, including: - [401(k) Retirement Plans](https://blog.ahola.com/benefits-of-offering-a-401k?utm_campaign=ProActive%20HR&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz-9u5faiO8j6eBe4P3WUUnJUt4kCeNEANFAIPI-k0f_rAE97pAVwYSHrwOZ2q5dBrxRIUP7c) - Pension Plans - Life Insurance - Accidental Death & Dismemberment Insurance Keeping beneficiary data up to date helps mitigate risk for your organization and ensures employees’ wishes are honored during life-changing events. ### Why Annual Updates Matter 1. **Risk Mitigation - **Outdated beneficiary designations can expose the company to administrative headaches and potential legal disputes. 2. **Employee Support - **In the event of an employee’s death, current beneficiary information ensures benefits flow to the intended person without delay. 3. **Peace of Mind - **Employees and their families gain confidence knowing their benefit plans reflect their true wishes. ### A Real-World Example A manufacturing firm had an employee who divorced and later remarried—but never updated his beneficiary form. When he passed away, his life insurance proceeds were paid to his ex-wife rather than his current spouse, causing significant distress for everyone involved. This scenario underscores why annual reviews of beneficiary forms are not just a “nice to have,” but an HR imperative. ### Tips for Encouraging Annual Reviews 1. **Calendar Reminders** - Send yearly email or intranet notifications reminding employees to log in and confirm their beneficiary elections. 2. **Education & Resources** - Partner with your broker to offer [webinars](https://info.ahola.com/webinars), FAQs, or quick-reference guides that explain: - What a beneficiary designation is - How to update forms - Why keeping this information current matters 3. **Incentivize Compliance** - Consider small recognition—such as “Benefits Review Champions”—for teams with 100% completion rates. ### Supporting Your Team Encourage employees to spend just **a few minutes each year** reviewing their beneficiary designations. With clear communication, easy-to-access resources, and consistent reminders, you can help prevent future heartache, protect your organization from disputes, and ensure every employee’s wishes are respected. ### Reply a Comment ## RELATED POSTS [![](https://blog.ahola.com/hubfs/blog%20stock%20frame%20(2)-1.png) ](https://blog.ahola.com/5-reasons-payroll-benefits-integration-is-critical-for-your-business) [5 Reasons Payroll & Benefits Integration Is Critical for Your Business](https://blog.ahola.com/5-reasons-payroll-benefits-integration-is-critical-for-your-business) [![](https://blog.ahola.com/hubfs/Copy%20of%20blog%20stock%20frame%20(14).png) ](https://blog.ahola.com/erisa-explained-what-business-owners-need-to-know) [ERISA Explained: What Business Owners Need to Know](https://blog.ahola.com/erisa-explained-what-business-owners-need-to-know) [![](https://blog.ahola.com/hubfs/Happy%20relaxed%20young%20woman%20sitting%20in%20her%20kitchen%20with%20a%20laptop%20in%20front%20of%20her%20stretching%20her%20arms%20above%20her%20head%20and%20looking%20out%20of%20the%20window%20with%20a%20smile.jpeg) ](https://blog.ahola.com/why-having-a-payroll-provider-is-a-game-changer) [Why Having a Payroll Provider Is a Game-Changer!](https://blog.ahola.com/why-having-a-payroll-provider-is-a-game-changer) ## SUBSCRIBE ### Recent posts - [Professionalizing HR Without Losing Your Family Culture ](https://blog.ahola.com/professionalizing-hr-without-losing-your-family-culture) - [Why Encouraging Employees to Take Summer Vacation Benefits Your Workplace ](https://blog.ahola.com/why-encouraging-employees-to-take-summer-vacation-benefits-your-workplace) - [Ahola Named a 2026 Top Workplace — Six Years Running! ](https://blog.ahola.com/ahola-named-a-2026-top-workplace) - ### Topics - [Affordable Care Act (13)](https://blog.ahola.com/tag/affordable-care-act) - [Benefits (223)](https://blog.ahola.com/tag/benefits) - [Cybersecurity (1)](https://blog.ahola.com/tag/cybersecurity) - [Employee Engagement (255)](https://blog.ahola.com/tag/employee-engagement) - [Employees (603)](https://blog.ahola.com/tag/employees) - [Family Business Insights (10)](https://blog.ahola.com/tag/family-business-insights) - [Hiring (282)](https://blog.ahola.com/tag/hiring) - [Human Resources (645)](https://blog.ahola.com/tag/human-resources) - [Laws/Policies (26)](https://blog.ahola.com/tag/laws-policies) - [Managing COVID-19 (153)](https://blog.ahola.com/tag/managing-covid-19) - [News Release (56)](https://blog.ahola.com/tag/news-release) - [Offboarding (3)](https://blog.ahola.com/tag/offboarding) - [onboarding (7)](https://blog.ahola.com/tag/onboarding) - [Payroll (428)](https://blog.ahola.com/tag/payroll) - [Recruiting (142)](https://blog.ahola.com/tag/recruiting) - [Safety (121)](https://blog.ahola.com/tag/safety) - [Tax Compliance (230)](https://blog.ahola.com/tag/tax-compliance) - [Time & Attendance (124)](https://blog.ahola.com/tag/time-attendance) - [Training & Development (214)](https://blog.ahola.com/tag/training-development) - [Trending Topic (75)](https://blog.ahola.com/tag/trending-topic) - [Uncategorized (1)](https://blog.ahola.com/tag/uncategorized) - [Webinars (69)](https://blog.ahola.com/tag/webinars) - [Workers Comp (1)](https://blog.ahola.com/tag/workers-comp) [see all topics](https://blog.ahola.com/how-often-should-employees-update-beneficiary-forms#) ### GENERAL DISCLAIMER This blog is for informational and educational purposes only. It does not constitute legal advice, and cannot constitute legal advice, because the authors are not licensed attorneys. Readers should not rely or act upon any information presented on this blog without seeking professional legal counsel. The views expressed in each post are those of the author, and the author alone; they are not the views of Ahola. The information provided in this blog is general, and based on information available as of the date of publishing. Information herein is provided on an “as is” or “as available” basis; we make no warranty of any kind to you regarding the information provided and disclaim any liability for damages from use of the blog or its content. Please consult an attorney to obtain advice with respect to any particular question or issue. 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