What does Secondary Beneficiary mean? Read on to discover the definition & meaning of the term Secondary Beneficiary - to help you better understand the language used in insurance policies.
A secondary beneficiary is a person who is designated to receive benefits of a life insurance policy, trust or will if the primary beneficiary dies before the assets can be administered to that person. Many people select secondary beneficiaries to make sure that their money has a person to go to even if it cannot go to their first choice.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Secondary Beneficiary. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: