The Difference Between Primary & Contingent Beneficiaries

Thursday, 11 August 2022

Life Insurance

None of us like to talk about it, but we all need it! Yep, you guessed it… it’s life insurance!

Having life insurance helps you sleep better at night because you know that your loved ones are financially taken care of in case anything were to happen to you.

One of the most important things to consider when taking out a life insurance policy is who to name as your beneficiary.

A beneficiary is the designated person who receives the benefit payout of a life insurance policy.

But did you know that there are two types of beneficiaries? There’s a primary beneficiary and a contingent beneficiary that you can list on your life insurance policy.

A primary beneficiary is the person who’s going to receive the life insurance money first. A contingent beneficiary is your plan B; they will receive the life insurance money if something were to happen to both you and your primary beneficiary.

It’s always a good idea to have a plan B, so make sure to list a contingent beneficiary on your life insurance policy!

If you ever need to remove or change your primary or contingent beneficiaries, you can do so by contacting your carrier.

If you have any questions about primary or contingent beneficiaries or would like a life insurance quote, give Clevenger Insurance a call today at 574-267-2181.

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