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If someone buys life insurance, do they need social security number of beneficiary? |
If someone buys life insurance, do they need social security number of beneficiary? No not to buy it, but to pay it out yes. Even though life insurance is not taxable, in order to process the claim we ask for a social security number. When I write a policy, I only need a name and address. The beneficiaries usually are eager to contact me for their money. Yes, they typically do. A Social Security Number is the government's (and most other establishments') primary way of identifying someone. It's been my experience that my insurance carrier required my parents' (my beneficiaries) social security numbers. Yes. This is a common request by life insurance companies. This way they know the persons exist and they can easily locate them if you should die. It's good that you are questioning this procedure. I would and have, too. Nobody likes to give out social security numbers unless it is absolutely required. I had to do this recently with my own life insurance policy, giving the insurance company the social security numbers for my daughters. I filled in the information on the beneficiary change form and mailed it to the insurance company. I would recommend not sending this information over the internet, or by e-mail. Only send it to the insurance company in writing via the regular mail. I think you are much safer that way. The insurance company uses this information to contact or find the beneficiary after you have passed away and a claim has been made. This helps them locate the beneficiaries of your policy, in case they have moved or their phone number has changed. Hope that helps! Best of luck with your life insurance policy. I believe they have to report any payout to the IRS. This would require a social security #. As previously mentioned it also helps locate the benificiary. A social security number is not necessarily required at the time a policy is taken out or a beneficiary is changed. It does become required at the time of payout as the beneficiary may have to report any "earnings" depending on the type of policy. Usually the only thing required at time of application is Name, DOB, and Relationship to Insured. State Farm Agent Staff NO, you do not, they request it as it makes it easier to track down the beneficiary. Hope this helps. |
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