Contingent Beneficiary or Primary Beneficiary

Contingent Beneficiary The person(s) designated to receive the proceeds of the life policy if the Primary Beneficiary is death. Simply stated, a primary beneficiary is the first person entitled to receive the benefits, and a contingent beneficiary is next in line. For instance, the owner of the policy chooses his/her spouse as the primary beneficiary.However, the spouse dies at the same time as that of the insured. Here the children of the insured will become the contingent beneficiary. Naming a contingent beneficiary may not be required when you purchase life insurance, but it can help make sure someone you care about receives your death benefit in case your primary beneficiaries no longer can. Without a contingent beneficiary, your insurance payout goes through probate and some jurisdictions it may be subject to estate taxes or debt collection. Most people name a family member, but you could also name a charity or trust. It is possible to name multiple contingent beneficiaries. It is very simple when your insurer can confirm that all primary beneficiaries are no longer living, the insurer will move on to contacting your contingent beneficiaries. Those living will receive your death benefit as you've instructed in your policy. Updating your contingent beneficiaries list is very important. Review your beneficiary designations throughout the entirety of your policy's term to keep both your primary and contingent beneficiaries current. After major life events, such as marriage, divorce, or the death of a loved one, check your policy to see if you want to make changes. By reviewing your beneficiaries regularly, you can help ensure a smooth payout process after your passing. Remember to notify new beneficiaries when you name them on your policy, and make sure they know who your insurer is; that way they know to claim the payout when you pass. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful