When you start researching and applying for life insurance, you might come across terms you’ve never heard before – like “primary” and “secondary” or “contingent” beneficiaries.
We’re here to help you understand final expense life insurance, and choosing your beneficiaries is part of the process.
When You’ll See These Terms
To put it simply, the beneficiaries are your loved ones who will receive funds when your policy pays out. You’ll be asked to choose them when you’re filling out an application.
What It Means
Primary beneficiaries are the people who you want to have the funds first. These might include your closest relatives – like your spouse or your children.
Your secondary beneficiaries are the ones who are “next in line” after your primary beneficiaries. These are also called your contingent beneficiaries.
Keep in mind that your secondary beneficiaries won’t receive any funds unless all your primary beneficiaries pass before you do. And it’s best to always name adults as your beneficiaries.
Generally, you should consider listing both types of beneficiaries. Why? Because we don’t know what the future holds. Having both primary and secondary beneficiaries helps ensure the funds get to the people you want to have them when they need it.
How It Works
You can designate what percentage of the funds each primary or secondary beneficiary will receive.
For example, let’s say you list your husband as your primary beneficiary, with him receiving 100 percent of the funds. You make your four children your secondary beneficiaries. You decide your children will split the funds into four equal parts (25% each).
If your husband passes away before you do, then your four children would each receive 25% of the funds. If you pass away before your husband does, then he would receive 100% of your policy.
Information You’ll Need
When you’re filling out your application, be sure you have basic information about your beneficiaries available. For Peace Assured final expense life insurance, you’ll need their full names, the states they live in and their birthdays.
While that’s the only information required to name a beneficiary on our applications, it’s a good idea to also have their addresses and Social Security numbers to include.
Also, you may want to periodically review your beneficiary information to be sure it’s still current. For example, if one of your beneficiaries moves to a different state, you’ll want to update that information.
Why It Matters
Deciding how you want your final expense life insurance policy to be divided can help give you and your family peace of mind. It means the people who will need to pay your final expenses will have fast, easy access to the money they need during a difficult time.
The Peace Assured Difference
Peace Assured makes getting coverage for your final expenses easier than before. You can apply completely online, or talk with one of our friendly, non-commissioned agents. You’ll have a decision about your coverage within a few minutes. And, you can choose the premium payment interval that best fits your needs and your budget.
Your coverage will start immediately, and you can make updates you need 24/7 on you online portal. What’s simpler than coverage like that?
You can get started today, just by clicking the Get a Quote button that the top of this page. Or you can give us a call at 866-353-8995 to talk with one of our non-commissioned licensed life insurance agents.