Life Insurance Basics
What is a life insurance beneficiary?
A life insurance beneficiary is the person or entity who receives the death benefit when the insured dies. You can name primary beneficiaries (first in line) and contingent beneficiaries (receive the benefit if all primary beneficiaries predecease the insured).
Key Points
- Primary beneficiary: first in line to receive the death benefit
- Contingent beneficiary: receives benefit if all primary beneficiaries predecease the insured
- Can name multiple beneficiaries with specified percentages
- Beneficiary designations override your will
- Update beneficiaries after major life events