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Most life insurance companies require you to name at least one beneficiary. If beneficiaries are not named, the life insurance proceeds can go to your estate. If you dont have a will, your estate, including the death benefit, may need to go through probate court.
It saves time. If you die and have not named a beneficiary, this will delay the transfer of whatever funds are in those accounts. In some instances, the delay could be significant and require that the person in charge of your affairs or estate complete a lot of paperwork to make it happen.
While it is often beneficial to communicate with beneficiaries regarding the estate administration, executors are not required to comply with every single request for information.
Forms for Designations We recommend that you designate beneficiaries to receive your life insurance benefits. However, if you are happy with the order of precedence(PDF file), you dont have to do anything.
If you want the kids to be first in line, use primary. The joint account owner will retain ownership before beneficiaries.
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Most life insurance policies have a default order of payment if you do not name a beneficiary. For many individual policies, the death benefit will be paid to the owner of the policy if they are different than the insured person and still alive, otherwise it will be paid to the owners estate.

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