Primary and Secondary Beneficiaries
A lot of people are asking us why they are not allowed to just list down the people they want as beneficiary. Here’s the answer:
One can only qualify as your beneficiary when you fill out your application form if they are suffering financially when you die. In short, it is expected that these individuals will undergo financial loss because of your death. The usual beneficiaries include your husband/wife, children, extended family and business partners.
What are contingents or secondary beneficiaries? They are the ones will receive a benefit coming from your life insurance. They can only claim the benefits if the primary benefit dies at the same time. For example, if the insured individual and the primary beneficiary dies in a same time.
