What is a beneficiary?
Definition: The person(s) or organization(s) designated by the policyowner to receive the death benefit upon the death of the insured. • Primary beneficiary – The primary beneficiary generally has first rights to the death benefit. • Contingent beneficiary – The contingent beneficiary is entitled to receive the death benefit when the primary beneficiary predeceases the insured.
A beneficiary is a person or entity named to receive a portion of the proceeds of a life insurance policy. The owner of a life insurance policy may name multiple beneficiaries, and can determine the percent of proceeds to each beneficiary (proceeds do not have to be split equally among beneficiaries). Most insurance companies permit the policyholder to change beneficiaries over time. There are two types of beneficiaries: primary and contingent. Primary beneficiaries have the first claim to the proceeds of a life insurance policy should the insured die. The policyholder of a life insurance policy may also specify a contingent or secondary beneficiary. The contingent beneficiary has claim to a portion of the death proceeds in the event a primary beneficiary dies prior to the policyholder. If you click the “Apply” button to begin the application process, you will be able to enter the names of up to 3 primary beneficiaries. At any time during the application process you can change your ben
