When it comes to life insurance, we at Kalare Tech in New Windsor, NY, understand that you want to ensure your loved ones are taken care of after your passing. We specialize in helping you organize your life benefits so that your wishes can be carried out without issue upon your death.
You can designate life insurance benefits to an individual or multiple people, a trust, or an organization. Whoever you decide to leave these benefits to is called the policy beneficiary. But what happens if circumstances change before your passing and you haven’t had a chance to update your policy to reflect these changes? In that case, you can opt to list more than one type of beneficiary on your policy.
There are several types of beneficiaries on a life insurance policy: primary beneficiaries, contingent beneficiaries, irrevocable beneficiaries, and revocable ones.
Primary Beneficiary
A primary beneficiary is the first person or entity listed on the policy to receive benefits. For example, some people may list their spouses as primary beneficiaries. It’s important to note that you can list multiple primary beneficiaries.
Contingent Beneficiary
This type of beneficiary is considered a backup beneficiary if the primary listed on the policy cannot receive the benefits. For instance, children can be listed as contingent beneficiaries when a spouse, who was the primary beneficiary, has passed away.
Irrevocable Beneficiary
An irrevocable beneficiary is a beneficiary whose status on the policy cannot be removed without their consent. They have rights and control over certain aspects of the life insurance policy.
Revocable Beneficiary
A revocable beneficiary can be removed from the policy by the policyholder without their consent.
Learn More About Beneficiaries
To learn more about life insurance beneficiaries and for any other questions and concerns, call us today at Kalare Tech in New Windsor, NY, at (866) 918-9938.
