What is an example of a contingent beneficiary?
Contingent beneficiaries need to be reviewed and updated after major life changes, such as marriage, divorce, birth, or death. For example, after Chris and Rain divorce, Chris updates their life insurance policy so Chris' child River is the primary beneficiary and Chris' other child Riley is the contingent beneficiary.
What is the difference between a beneficiary and a contingent?
The first person or organization you name to receive an asset is the primary beneficiary. A contingent beneficiary — sometimes called a secondary beneficiary — is the person or organization next in line to receive assets if your primary beneficiary isn't able to.
What describes a contingent beneficiary?
A contingent beneficiary, or secondary beneficiary, serves as a backup to the primary beneficiaries named on your life insurance policy. When you pass away, if all of your primary beneficiaries have also passed away, your contingent beneficiaries will receive the payout.
What is the difference between a beneficiary and a contingent?
The first person or organization you name to receive an asset is the primary beneficiary. A contingent beneficiary — sometimes called a secondary beneficiary — is the person or organization next in line to receive assets if your primary beneficiary isn't able to.
What is an example of a contingent beneficiary?
Contingent beneficiaries need to be reviewed and updated after major life changes, such as marriage, divorce, birth, or death. For example, after Chris and Rain divorce, Chris updates their life insurance policy so Chris' child River is the primary beneficiary and Chris' other child Riley is the contingent beneficiary.
Who should be your primary beneficiary?
A primary beneficiary is the person (or persons) first in line to receive the death benefit from your life insurance policy — typically your spouse, children or other family members.