9:32
[kevin oleary]
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LSDefine
Simple English definitions for legal terms
secondary beneficiary
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A quick definition of secondary beneficiary:
A secondary beneficiary is someone who is named as a backup recipient of a gift or benefit in case the primary beneficiary is unable or unwilling to receive it. For example, in a life insurance policy, the primary beneficiary is the person who will receive the proceeds when the insured person dies. However, if the primary beneficiary is no longer alive or cannot be located, the secondary beneficiary will receive the proceeds instead.
A more thorough explanation:
A secondary beneficiary is a person who is designated to receive something, such as money or property, if the primary beneficiary is unable or unwilling to receive it. This is also known as a contingent beneficiary.
For example, if John names his wife Mary as the primary beneficiary of his life insurance policy, but also names his son Tom as the secondary beneficiary, Tom will receive the proceeds if Mary is unable or unwilling to receive them.
This is important because it ensures that the assets will go to someone the policyholder wants, even if the primary beneficiary cannot receive them for some reason.