One of the first things you’ll be asked when you set up your San Antonio, TX life insurance policy through our team at LeapFrog Insurance is who do you want to name as your beneficiary.
Choosing Your Beneficiary
A beneficiary is a person or organization who will receive the financial payouts of your policy upon your death. No one can tell you who you want to name as your beneficiary or beneficiaries, but you will want to pick one of the following:
- A sole individual
- Two or more people
- A charity you trust
- The trustee of your own personal trust
- Your estate (if you don’t name any beneficiaries, then your life insurance will, by default, payout to your estate)
Primary vs. Contingent Beneficiaries
Now, as you consider who you want to be your beneficiary or beneficiaries, it’s important to also note that your life insurance will list spaces for two different types of life insurance beneficiaries. The first important beneficiary type being:
- Primary beneficiary. The primary beneficiary is also known as the main beneficiary. This is the person, persons, or entity that will directly receive the proceeds from your life insurance policy upon your death.
But what if your primary beneficiary dies before you do and before you get a chance to update your life insurance policy? Or if the listed charity dissolves? It’s for these situations that life insurance policies insist on the second type of beneficiary:
- Contingent beneficiary. Also known as the secondary beneficiary, this person or entity will only receive your death benefits if the primary beneficiary dies or dissolves before you do.
Set Up Your Life Insurance Policy
Are you ready to set up your life insurance policy? Contact our team today at LeapFrog Insurance.