Definition - What does Secondary Beneficiary mean?
A secondary beneficiary is a person who is designated to receive benefits of a life insurance policy, trust or will if the primary beneficiary dies before the assets can be administered to that person. Many people select secondary beneficiaries to make sure that their money has a person to go to even if it cannot go to their first choice.
Insuranceopedia explains Secondary Beneficiary
Life insurance death benefits can often represent a substantial amount of value. So if a person is named as a secondary beneficiary, and if the primary beneficiary dies, then the secondary beneficiary can receive a tremendous amount of money. The term "secondary beneficiary" is often used synonymously with the term "contingent beneficiary." With a secondary beneficiary, the contingency for the person receiving the money is simply that the primary beneficiary has died. It is not necessary to name secondary beneficiaries.
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