Life insurance is an excellent way to ensure financial protection for your loved ones or cherished organizations after your passing. At Bryan Insurance Agency LLC in New Windsor, NY, we’re committed to helping you create a plan that ensures the people and causes you care about most are well taken care of.
In a life insurance policy, the individuals or organizations that receive benefits from the policy are known as beneficiaries. These beneficiaries receive compensation upon the death of the insured individual named in the policy. Commonly, parents list their children as beneficiaries, spouses name each other, or a policyholder designates an organization, such as an educational institution or charity, to receive the death benefits.
When it comes to designating policy beneficiaries, you’ll encounter two main types in a life insurance policy: primary and contingent beneficiaries.
Primary Beneficiary
Primary beneficiaries are the individuals or organizations you designate to receive the death benefits upon your passing. You can list more than one primary beneficiary. For instance, a parent with three children might list each child as a beneficiary. It’s worth noting that you can specify a certain percentage of the benefit for each beneficiary. If a mother of three leaves $100,000 to her children equally, each would receive 33.3% of the payout upon her death.
Contingent Beneficiary
Contingent beneficiaries differ in receiving benefits contingent upon a primary beneficiary’s death. For example, a husband might designate his wife as the primary beneficiary and his children as contingent beneficiaries. If she predeceases him, the children would receive the life insurance proceeds in her place.
More Information on New York Life Insurance
For more information about life insurance, including which policies are best for you and your policy beneficiaries, contact Bryan Insurance Agency LLC in New Windsor, NY, at (888) 565-2212 or info@bryanagency.com.