What are the legal requirements for a life insurance beneficiary designation?

The legal requirement for a life insurance beneficiary designation necessitates that it be explicitly stated in the policy to be valid. This means that the policyholder must designate a beneficiary within the official documentation of the policy itself. This ensures clarity and legal standing, as the insurance company must know who the intended recipient of the death benefit is at the time of the policyholder’s passing. Stating it in the policy also helps prevent disputes regarding beneficiary designation and provides a clear record for the insurer.

Having a verbal agreement or an informal understanding does not satisfy the legal requirements because it lacks the formal documentation essential for enforceability. A witness signature is generally not required under Indiana law for the designation of a beneficiary, as it's not a standard practice that adds validity to the designation. Similarly, filing the beneficiary designation with the state insurance board is not typically mandated; instead, it is the responsibility of the insurance company to maintain accurate records of policies and their beneficiaries.