Purchasing a life insurance policy for those you care about most is one of the most thoughtful gestures anyone can offer. It ensures that your loved ones or the organizations you care about most can still operate and function financially when you are no longer with them. When you purchase a life insurance policy, the person(s) or organization(s) you leave proceeds to are called beneficiaries. But when it comes to beneficiaries and prioritizing who gets what after your passing, we at Spring Grove Insurance in Spring Grove, IL, are here to help.
There are two types of beneficiaries for you to consider when making your life insurance policy: primary and contingent beneficiaries.
Primary Beneficiaries
Primary beneficiaries are the people or organizations to whom you leave your death benefits. You can leave the policy benefits to one or multiple primary beneficiaries at a time. For instance, if you are a parent who is leaving death benefits to your five children equally, you can list all of them as primary beneficiaries receiving equal amounts of the benefits.
Contingent Beneficiaries
Contingent beneficiaries are like backup beneficiaries. If someone is not alive to receive the death benefits you leave on your life insurance policy, any person or organization you leave as a contingent beneficiary will receive the benefits. For instance, you may have listed a spouse as a primary beneficiary and your children as contingent beneficiaries. Therefore, if your spouse dies and is unable to receive the life insurance payout upon your death, it will go to your children instead.
For More Information About Life Insurance
Call Spring Grove Insurance in Spring Grove, IL, for more information on life insurance and beneficiaries. We can help you make an informed decision about the specifics of your policy and give you peace of mind that those you care for the most will be taken care of after your death.
