How to choose a Life Insurance Beneficiary? Allocation Rules and More.

There are two types of life insurance beneficiaries, a primary beneficiary, and a contingent beneficiary. Each designation determines how the death benefit is paid to all beneficiaries.

Life insurance is purchased for many reasons. But there is typically one element that is similar in all life insurance purchases – the future financial security of the life insurance beneficiary. That’s why it is important to know how to choose beneficiaries for life insurance, both primary vs contingent.