Secondary Beneficiary

What Does Secondary Beneficiary Mean?

A secondary beneficiary is an individual designated to receive the benefits of a life insurance policy, trust, or will if the primary beneficiary dies before the assets can be transferred to them. Many people designate secondary beneficiaries to ensure their assets have a recipient even if their first choice is unavailable.

Insuranceopedia Explains Secondary Beneficiary

Life insurance death benefits often hold significant value. If the primary beneficiary dies, a named secondary beneficiary can inherit a substantial sum. The term “secondary beneficiary” is often used interchangeably with “contingent beneficiary.” For a secondary beneficiary to receive the benefits, the contingency is simply the death of the primary beneficiary. Naming a secondary beneficiary is optional but can provide additional assurance for the distribution of assets.