How many beneficiaries can a life insurance policy have?
The Short Answer. The answer to the titular questions is, in short, yes. Yes, your life insurance policy can have more than one named beneficiary. In fact, naming several beneficiaries in your life insurance policy is a very common practice.
What happens when there are two primary beneficiaries on a life insurance policy?
If the primary beneficiary is not available, for example, if they cannot be found or they are deceased, the secondary or contingent beneficiary is next in line to receive the death benefit. What happens when there are two beneficiaries on a life insurance policy?
Who are contingent beneficiaries on a life insurance policy?
Contingent beneficiaries are the people you name as backups should your primary beneficiaries die before or at the same time as you. These backup beneficiaries only receive the money if the primary beneficiaries are unable to. A person that you want your life insurance money to go to.
Who is primary beneficiary of John Smith life insurance policy?
John Smith has a $500,000 life insurance policy and names his wife primary beneficiary. He also names his brother as secondary beneficiary in case he and his wife die at the same time. Naming a tertiary beneficiary would be the back-up if both the primary and secondary beneficiaries were unable to receive the death benefit.
Can a business owner be a beneficiary of a life insurance policy?
Or the business owner may buy a life insurance policy and name a co-owner as beneficiary, enabling the co-owner to purchase the policyholder’s share of the business if the policyholder dies. What If You Want to Name Multiple Beneficiaries? If you want to name more than one life insurance beneficiary, there are two approaches you can take:
If the primary beneficiary is not available, for example, if they cannot be found or they are deceased, the secondary or contingent beneficiary is next in line to receive the death benefit. What happens when there are two beneficiaries on a life insurance policy?
Who is the contingent beneficiary of a life insurance policy?
A contingent beneficiary is someone who receives some or all of the death benefit in the event that the primary beneficiary (or beneficiaries) are dead or cannot be found. Let’s say you purchase a policy with a $1 million death benefit, and name your husband or wife as the beneficiary.
John Smith has a $500,000 life insurance policy and names his wife primary beneficiary. He also names his brother as secondary beneficiary in case he and his wife die at the same time. Naming a tertiary beneficiary would be the back-up if both the primary and secondary beneficiaries were unable to receive the death benefit.
Or the business owner may buy a life insurance policy and name a co-owner as beneficiary, enabling the co-owner to purchase the policyholder’s share of the business if the policyholder dies. What If You Want to Name Multiple Beneficiaries? If you want to name more than one life insurance beneficiary, there are two approaches you can take: