Successor Beneficiary

What Does Successor Beneficiary Mean?

A successor beneficiary is the individual designated to receive the death benefit of a life insurance policy if the primary beneficiary predeceases the insured. However, as long as the primary beneficiary is alive, they retain the right to the policy proceeds. If the primary beneficiary dies after receiving the death benefit, the funds are transferred to their estate, not to the successor beneficiary.

Insuranceopedia Explains Successor Beneficiary

For example, a man designates his wife as the primary beneficiary and his brother as the successor beneficiary. If he and his wife were to pass away in a car accident, his brother would receive the death benefit. However, if his wife survived, the proceeds would go to her, and his brother would have no claim to the benefit.