What is a beneficiary? A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name: If you don’t name a beneficiary, the death benefit will be paid to your estate. Your life insurance policy should have both “primary” and “contingent” beneficiaries.
What is a secondary beneficiary in life insurance?
Another term for a secondary beneficiary is a “contingent” beneficiary. If you ever hear that term, know that it is synonymous with “secondary.” The life insurance beneficiary is the person, or people, that directly receives the financial death benefit when a life insurance policy pays out after the policyholder’s death.
What is a beneficiary in an inheritance?
Beneficiaries often receive these benefits as part of an inheritance. A beneficiary can be designated in the documents relating to a life insurance policy, a retirement account, a brokerage account, a bank account, and other financial products.
