What is a 'Secondary Beneficiary'
A secondary beneficiary is a person or entity that inherits assets under a will, trust or insurance policy if the primary beneficiary dies before the grantor. A secondary beneficiary would also be considered a "contingent beneficiary".
BREAKING DOWN 'Secondary Beneficiary'
A contingent beneficiary is a beneficiary who inherits assets only if certain conditions are met. Many times, a secondary beneficiary inherits assets if the primary beneficiary dies, which is a condition to be met. However, not all contingent beneficiaries stand to inherit only if another beneficiary dies, as there may be more than one condition that must be met.