Asked by: Doralia Espinarasked in category: General Last Updated: 29th May, 2020
What is a secondary beneficiary on a life insurance policy?
Simply so, what does it mean to be a secondary beneficiary?
A secondary beneficiary is a person or entity who inherits assets under a will, trust, or insurance policy if the primary beneficiary dies before the grantor. A secondary beneficiary is also a person's second choice of who should receive the proceeds from a life insurance policy.
Also Know, what is the difference between a primary and a secondary beneficiary? Your primary beneficiary is the individual who is first in line to receive any account assets after you pass away. The secondary or the contingent beneficiary may be eligible to get the remaining account assets so long as there are no other surviving primary beneficiaries when you pass away.
Simply so, can you have two primary beneficiaries on life insurance?
You Can Have Multiple Beneficiaries. For example, you can have two primary beneficiaries and three contingent beneficiaries. Or you can have five primary beneficiaries and no contingent beneficiaries. There are no limits to the number of beneficiaries you designate, as long as each one has an insurable interest.
How many beneficiaries can you have on a life insurance policy?
The beneficiary of your life insurance policy is the individual who will receive the benefit in the event of your death. You're not limited to just one person. A policy can have more than one beneficiary. A policy's primary beneficiary is the first person who will receive the benefits of that policy when you die.