Life insurance is an indemnification product used in “defensive” planning to protect the beneficiaries from economic loss due to the death of the policy insured. The first line of indemnification is protecting the primary beneficiary, the one who would suffer the greatest of financial repercussions. In a marriage for example, the spouse of the insured would be first position, primary beneficiary, the children of the marriage could be contingent beneficiaries.
The primary beneficiary of life insurance is the one who would receive the money if the insured person passed away. There can be more than one primary beneficiary, with each one getting a certain percent of the death benefit.
If the primary beneficiary is deceased, the money is split between the other primary beneficiaries. If there are no other primary beneficiaries, the death benefit then goes to the contingent beneficiaries.
The primary beneficiary of a life insurance policy is the one who would receive the money if the insured person passed away. There can be more than one primary beneficiary, with each one getting a certain percent of the death benefit.
If the primary beneficiary is deceased, the money is split between the other primary beneficiaries. If there are no other primary beneficiaries, the death benefit then goes to the contingent beneficiaries.
.JPG){kind=avatar}
If the primary beneficiary is deceased, the money is split between the other primary beneficiaries. If there are no other primary beneficiaries, the death benefit then goes to the contingent beneficiaries.
If the primary beneficiary is deceased, the money is split between the other primary beneficiaries. If there are no other primary beneficiaries, the death benefit then goes to the contingent beneficiaries.