Definition of Contingent beneficiary:
A contingent beneficiary is specified by an insurance contract holder or retirement account owner as the person or entity receiving proceeds if the primary beneficiary is deceased, unable to be located, or refuses the inheritance at the time the proceeds are to be paid. A contingent beneficiary is entitled to insurance proceeds or retirement assets only if certain predetermined conditions are met at the time of the insured's death, such as information found in a will.
Person or other legal entity designated to receive a benefit in case the primary beneficiary is unable, unavailable, or unwilling to receive it. Also called secondary beneficiary, contingent payee.
For a contingent beneficiary of a will, virtually any conditions may be in place; it depends entirely on the person drafting the will. A contingent beneficiary will receive nothing if the primary beneficiary accepts an inheritance. For example, let us say Cheryl lists her husband John as the primary beneficiary for her life insurance policy and their two children as contingent beneficiaries. When Cheryl dies, John receives the insurance payout and the children receive nothing. If John predeceases Cheryl, their children each receive half the proceeds.
How to use Contingent beneficiary in a sentence?
- Multiple contingent beneficiaries can be listed in which each beneficiary is designated a specific percentage of the money, adding up to 100%.
- A contingent beneficiary is a beneficiary of proceeds or a payout if the primary beneficiary is deceased or unable to be located.
- A contingent beneficiary can be named in an insurance contract or a retirement account.
Meaning of Contingent beneficiary & Contingent beneficiary Definition