Different Types of Beneficiaries in Life Insurance

Term insurance can be a very important investment for everyone, especially for those who have a growing family. Life insurance policyholders can get hassle-free wealth distribution among child, assured benefits, death benefit and last but not the least, emergency loans at affordable interest.

Buyers only have to make an effective strategy with the help of insurance advisor. Remember that beneficiary is the most prominent feature of any type of life insurance.

In this post, Policyboss will give information about different types of beneficiaries in term insurance. After reading this post, you’ll come to know that how these insurance products can make a huge difference in beneficiaries’ life.

Contingent Beneficiary

Secondary beneficiary is also called as contingent beneficiary. You can make a more sensible decision if you choose to name a contingent beneficiary. Suppose, policyholder’s primary beneficiary dies near the time of his own demise, then his children will eligible for insurance money only if he nominate them as secondary beneficiaries.

This contingent beneficiary can get term insurance proceeds in case the primary beneficiary dies before he/she can get the assets.

Multiple Beneficiaries

Insured can nominate his children as multiple beneficiaries. You only have to indicate the names of recipients and the amount of proceeds which beneficiaries are going to receive.

Irrevocable Beneficiary

Under this class of beneficiary, policyholders cannot change the name of beneficiary unless they consent to it. Creditors cannot touch the insurance proceeds as this money is not considered to be a part of your assets.

Revocable Beneficiary

During the policy period, insured can change the recipient name at any time.

Minor as a Beneficiary

If beneficiary is a minor child, then appoint trustee or guardian to look after insurance proceeds upon policyholder’s demise.