Agent, Rural Mutual Insurance Co., Union Grove, WI
If you are the beneficiary on a life insurance policy. It means that if the person that is insured under the policy dies and the policy is still inforce without any extenuating circumstances to prevent it from paying out; that you will receive the amount that is to be paid out under the policy.
The Primary Beneficiary of a life insurance policy is the person first designated by the Owner of the policy to receive the death benefit if the Insured person passes. The Primary Beneficiary may be one or more persons, or it may be a trust or other entity. If the Primary Beneficiary is one person, he/she gets 100% of the death benefit. If more than one beneficiary is noted, the death benefit may be split equally, or the policy may assign different percentages to go to each beneficiary.
Most policies list a Contingent Beneficiary (or more than one, as described above) as well. If all the Primary Beneficiaries are deceased, the death benefit would go to the Contingent Beneficiaries in the manner noted by the policy.
It is important to review life insurance policies regularly to make sure that the beneficiaries noted are up to date and that the death benefit goes to the person or persons intended.
The beneficiary of a life insurance policy is the person who receives the money in the event of the insureds death. Technically the beneficiary can do anything they want with the money. Life insurance proceeds are generally not taxable, (some exceptions may apply depending on the size of the estate) and avoid probate as long as the Estate is not the named beneficiary.
To be the beneficiary of a life insurance policy means that you would receive the life insurance proceeds if the insured person passed away. Primary beneficiaries are the person or persons who are "first in line" for the death benefit. The policy owner picks the beneficiaries, and if there are more than one, the policy owner determines what percent goes to each person. If there are two primary beneficiaries and one dies before the insured person dies, the other primary beneficiary gets the entire death benefit.
Contingent beneficiaries can be named in case none of the primary beneficiaries are longer alive when the insured person passes.
The beneficiary of a life insurance policy has a direct relationship to the policy insured based on the financial exposure and economic impact at the death of the insured. At the demise of the policy insured, death proceeds would be paid to the policy beneficiaries, who in turn, would more than likely pay down debt and use the remaining proceeds as they see fit.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The beneficiary is either someone to whom the insured is obligated or someone that the insured loves. The beneficiary is someone whose loss will be tempered when the insured dies. The relationship between the insured and the beneficiary is present at the time the policy starts. It isn’t necessarily there at the time of death. Checking to make sure the beneficiary is correct is extremely important. It isn’t unusual for ex-spouses to be the beneficiary when the insured did not intend that to be the case.
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Most policies list a Contingent Beneficiary (or more than one, as described above) as well. If all the Primary Beneficiaries are deceased, the death benefit would go to the Contingent Beneficiaries in the manner noted by the policy.
It is important to review life insurance policies regularly to make sure that the beneficiaries noted are up to date and that the death benefit goes to the person or persons intended.
Contingent beneficiaries can be named in case none of the primary beneficiaries are longer alive when the insured person passes.