A contingent beneficiary is your backup. They get the money if your main beneficiary dies before you.
Your primary beneficiary is first in line. Your contingent beneficiary is second in line.
If you name no backup and your main beneficiary has died, the money usually goes to your estate. Then it can be stuck in probate court.
Naming both a main and a backup beneficiary is one of the best ways to keep the money out of probate.
You can name more than one person or even a group, like a charity. Write down the percent each one gets.
Kids under 18 cannot get the money directly. A trust or a legal guardian can manage it for them.
More questions
Can I change my backup later?
Yes. In most cases you can change your beneficiaries as often as you like.
When should I review my beneficiaries?
After big life changes, like marriage, divorce, a new baby or a death in the family.
Words to know
- Beneficiary
- The person you name to get the death benefit when you die. You can name more than one.
- Contingent beneficiary
- A backup beneficiary. They get the money if your primary beneficiary can't be found.
- Estate
- All the money and property a person owns, especially at death.
- Probate
- The court process for passing on a person's property after they die.
