At Associated Insurance Agencies Inc. in Westerville, OH, we understand the importance of ensuring your loved ones are taken care of after your passing. When we pass away, we can leave a financial burden on our family, adding to the emotional strain of an already difficult time. That’s why we’re here to help you obtain a tailor-made policy that covers all bases and alleviates the financial burden of final expenses.

What Is a Beneficiary?

A beneficiary is the person(s) or institution to whom you leave proceeds from your life insurance policy. You can designate life insurance benefits to be left to individuals, charities, or trusts.

Primary Beneficiary

A primary beneficiary is the first set of individuals to receive assets from your life insurance policy. When you pass away, the primary beneficiaries receive the funds you have allocated to them. If there is more than one primary beneficiary, you can designate a percentage of the benefits to specific individuals or entities. For example, you could leave 90% to a spouse and 10% to your favorite charity.

Contingent Beneficiary

Contingent beneficiaries are considered secondary on a life insurance policy. If a primary recipient has passed away before you, the contingent beneficiary will receive the policy benefits instead. For instance, you may list your spouse as the primary beneficiary and your child as the contingent beneficiary. If your spouse is deceased at the time of your death, the life insurance proceeds will go to your child, the secondary beneficiary of the policy.

Similar to primary beneficiaries, contingent beneficiaries can include more than one person or entity and can be divided by percentages. Often, contingents are distant relatives, friends, or charities.

For More Information

To learn more about life insurance policies and beneficiaries, contact us today at Associated Insurance Agencies Inc. in Westerville, OH, at (800) 935-2335. Regardless of the unexpected nature of the event, we can ensure that your family, friends, or favorite organization receives the financial security you intended for them.