What is the difference between primary and contingent beneficiaries?

A primary beneficiary is the first in line to receive the life insurance death benefit. A contingent beneficiary (also called secondary beneficiary) receives the benefit if the primary beneficiary is deceased or cannot be located at the time of the claim.

Why contingent beneficiaries matter: if a primary beneficiary predeceases the insured and no contingent beneficiary is named, the death benefit goes to the estate — triggering probate and potentially delaying distribution. Naming a contingent beneficiary ensures the benefit flows directly to an intended recipient regardless of what happens to the primary.

Multiple beneficiaries: both primary and contingent beneficiary designations can include multiple people. Percentages can be allocated among multiple primary beneficiaries (e.g., 50% to spouse, 25% each to two children). The same flexibility applies to contingent designations.

Per stirpes vs. per capita: if a primary beneficiary predeceases the insured, a "per stirpes" designation passes that share to the deceased beneficiary's descendants. A "per capita" designation divides the share among surviving primary beneficiaries only. The right choice depends on your family structure.

Nevada policyholders should name both primary and contingent beneficiaries on every policy and review them at every major life event. Agents in our network recommend including this review as part of each coverage review.