Tertiary Beneficiary

What Does Tertiary Beneficiary Mean?

In life insurance, a tertiary beneficiary is the individual designated to receive the policy’s proceeds if the policyholder dies and both the primary and secondary beneficiaries are deceased at the time of the insured’s death.

Insuranceopedia Explains Tertiary Beneficiary

Being a tertiary beneficiary does not entitle the individual to a third of the proceeds. It simply places the person in line to receive the proceeds or assets if both the primary and secondary beneficiaries are no longer alive when the policyholder passes away. If either the primary or secondary beneficiary is still alive, the tertiary beneficiary’s entitlement is not activated.