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.

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RELATED FAQS
  1. Under what circumstances will a contingent beneficiary receive an insurance payout?

    Learn the different types of contingent beneficiaries and what conditions must be met for these beneficiaries to receive ... Read Answer >>
  2. How are contingent beneficiaries informed of a payout?

    Understand how contingent beneficiaries are made aware of a policy payout, and learn what policy owners can do to ensure ... Read Answer >>
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