What is the difference between primary and secondary beneficiary on an insurance policy?

Question

What is the difference between primary and secondary beneficiary on an insurance policy?

Answer 1

To provide a little more food for thought:

Many people today are instead choosing to name a trust as the beneficiary of their life insurance policy.  By creating a trust, you then have control of how the funds are disbursed in the event of your death.  When you name a person or organization as the beneficiary the funds will go directly to them.  A final thougth worth discussing with your agent is any potential tax consequences associated with your choice of beneficiary.  

Hope that helps!

Barrett Bartels

www.affordableamericaninsurance.com

Answer 2

The primary is who you want to receive the money in the event of your death.  

The secondary beneficiary only comes into play if the chosen primary beneficiary has died and is there for unable to inherit the money.

You can have more than one primary beneficiary- just make sure to put the percentage each person is to receive