Beneficiary
Legal and regulatory terms governing life insurance contracts.
What Is Beneficiary?
A beneficiary is the person, organization, or entity designated to receive the death benefit of a life insurance policy upon the insured's death. Policies allow for primary beneficiaries (first in line to receive proceeds) and contingent — or secondary — beneficiaries (who receive proceeds if primary beneficiaries predecease the insured or cannot be located). Beneficiaries can be individuals, trusts, charities, or estates. Designation is made on the policy application and can generally be updated at any time unless the beneficiary is designated as irrevocable. Keeping beneficiary designations current is one of the most important aspects of policy maintenance.
Nevada Context
Nevada follows community property laws, which may affect spousal rights to life insurance proceeds. A surviving spouse in Nevada may have a claim to community-owned policy proceeds depending on how premiums were paid.
How It Affects You
Outdated or vague beneficiary designations can delay or complicate claims. Review your designations after every major life event — marriage, divorce, birth of a child, or death of a named beneficiary.
Beneficiary in Practice
A Nevada policyholder names his spouse as primary beneficiary and his two adult children as equal contingent beneficiaries; if his spouse predeceases him, each child receives 50% of the illustrative $400,000 death benefit.
Dollar amounts shown are illustrative. Actual amounts vary by carrier, applicant age, health status, and individual underwriting.
Related Glossary Terms
Related Resources
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