Primary vs. Contingent beneficiary life insurance

 

The decision of who you want to receive a life insurance policy payout is an important one. Many people choose primary and contingent beneficiaries to designating the people that will receive their life insurance benefits in the event of their death. Understanding the differences between primary and contingent beneficiary life insurance policy payouts can help you make an informed decision about who should receive your benefits after your passing.

A primary beneficiary is the person or entity that is first in line to receive the death benefit from a life insurance policy. The primary beneficiary will receive the death benefit regardless of other beneficiaries listed on the life insurance policy, with no conditions attached. It's important to remember that if you choose a primary beneficiary, they will be the only person to receive the death benefit and they are not required to share the funds with anyone else.

On the other hand, a contingent beneficiary is someone who will only receive the life insurance proceeds if the primary beneficiary is deceased or unable to receive them. In this situation, the contingent beneficiary will be second in line to collect the death benefit from a life insurance policy. This type of beneficiary is often referred to as a "backup" beneficiary, as they would only be eligible to receive a payout if the primary beneficiary was not able to do so. If your looking for someone who is going to provide you with accurate information and who represents top A rated companies call Lon's Insurance for free quote.