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When one buys a life insurance policy, one must identify the person (or persons) to whom the proceeds will be paid upon the death of the insured. This is known as the Primary Beneficiary. One may also choose to name a "Contingent" (or secondary) Beneficiary, to whom the proceeds would be paid in the event that the Primary is unavailable (die to, for example, pre-deceasing the insured). Not everyone chooses to name a Contingent Beneficiary: in its absence, and if the Primary is unavailable, then the proceeds are generally payable tot he estate of the insured. It's worth noting that the beneficiary doesn't have to be a person: many people set up trusts specifically for this purpose. These are called "inter-vivos" or "life insurance" trusts. They are often used when the proposed beneficiaries are minors, or for estate preservation reasons.
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What is the difference between first and second beneficiaries?
Think of it as Primary and Contingent. If the Primary deceases before or with you the benefits would go to the contingent or secondary. Obviously if the primary deceased you would want to change your beneficiary assignment at that time. 4LifeGuild
Can a life insurance policy have more than 1 beneficiary?
Yes, you can have multiple primary beneficiaries, and contingent beneficiaries.
What do the word mean Primary and Contingent allocations in insurance?
It has to do with someones benefits for beneficiaries for life insurance, 401k, etc. Primary would be the person who is your first choice to receive the benefit's. Contingent would be the person who receives the benefits if the primary person is dead.
What is the difference between a primary beneficiary and a tertiary beneficiary?
A tertiary beneficiary is only entitled to proceeds if the primary and secondary beneficiaries are no longer living.
Who has life insurance on you?
I have life insurance on myself and I list my parents as primary beneficiaries and my siblings as contingent beneficiaries because I'm single and want to leave something behind to them in case I die.
Can you leave 50 percent to the primary beneficiary and 50 percent to the contigent beneficiary?
Yes. But you are using the wrong terms. You can leave 50% to each of two beneficiaries. The second will no longer be called the "contingent" beneficiary.
What is a beneficary?
A Contingent or Secondary Beneficiary will receive the proceeds from a life insurance policy after the Insured's deaths, if the Primary Beneficiary does not survive the Insured Person. This means, if the primary beneficiary is not alive at the time of death of the insured person, then the contingent beneficiary will receive the proceeds from the life insurance policy. Examples of situations which may give rise to the contingent beneficiary receiving the proceeds from a life insurance policy. 1. The insured and primary beneficiary die in an accident together, for example, a car accident. 2. The primary beneciairy dies, and the insured forgets to update the beneficiaries for his/her life insurance policy.
What is a contingeny beneficary?
A Contingent or Secondary Beneficiary will receive the proceeds from a life insurance policy after the Insured's deaths, if the Primary Beneficiary does not survive the Insured Person. This means, if the primary beneficiary is not alive at the time of death of the insured person, then the contingent beneficiary will receive the proceeds from the life insurance policy. Examples of situations which may give rise to the contingent beneficiary receiving the proceeds from a life insurance policy. 1. The insured and primary beneficiary die in an accident together, for example, a car accident. 2. The primary beneciairy dies, and the insured forgets to update the beneficiaries for his/her life insurance policy.
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