Your primary beneficiary is first in line to receive your death benefit. If the primary beneficiary dies before you, a secondary or contingent beneficiary is the next in line. Some people also designate a final beneficiary in the event the primary and secondary beneficiaries die before they do.

Should I name a secondary beneficiary?

Naming a secondary or tertiary beneficiary will have no impact on what the primary beneficiary inherits, but it can help ensure that the death benefit of your policy goes to someone you choose.

What is the difference between primary beneficiary and contingent beneficiary?

The primary beneficiary is the person or entity who has the first claim to inherit your assets after your death. The only way a contingent beneficiary inherits anything from the account or policy is if the primary beneficiary or beneficiaries have predeceased you or otherwise can’t be found.

What is a second beneficiary called?

What Is a Secondary Beneficiary? A secondary beneficiary, also known as a contingent beneficiary, is a person or entity that inherits assets under a will, trust, or account (e.g., insurance policy or annuity) when the primary beneficiary dies before the grantor.

Can a secondary beneficiary be named for a retirement account?

Parties may also name secondary beneficiaries for retirement accounts or other investment and retirement vehicles; doing so can avoid probate if the primary beneficiary cannot inherit the assets.

Who is the primary beneficiary of a life insurance policy?

Most retirement plans, annuities, and life insurance policies let you decide what should become of your assets in the event of your demise. They do this by asking you to designate beneficiaries. The primary beneficiary (or beneficiaries) inherit first.

Who is the secondary beneficiary of a grant?

A secondary or contingent beneficiary is a person or entity designated to inherit assets if the primary beneficiary predeceases the grantor. In some instances, a secondary beneficiary may inherit …

Can a minor be named as a beneficiary on a life insurance policy?

Naming a minor child as a beneficiary on your life insurance policy Parents use life insurance to provide for their children in the event that one or both of them die unexpectedly. However, naming a minor child as a beneficiary isn’t always the best approach. Life insurance companies won’t pay life benefits directly to a minor.