What is a Beneficiary?
A beneficiary is the person listed in the policy to receive the benefits when the insurer dies. You can either name a person, two or more people, a charity, or your estate. There are two levels of beneficiaries. Primary beneficiaries gets the benefits if they are present or are found after the death. If not, Contingent beneficiaries will get the benefits. If both beneficiaries are not found the said benefits will be turn over to the state of the insurer. So always remember that in listing the name of your beneficiaries, you should identify and write them as clearly as possible to make it easier for the life insurance company to find them. Choosing your beneficiaries is not that easy so take time to decide.