A life insurance beneficiary is the person or entity who receives the death benefit when you die. You should name both a primary and a contingent (backup) beneficiary, and review them after major life events.
Key Decision
By the Home & Dime Editorial Team · Updated 2026
Primary vs. contingent
- Primary receives the benefit first.
- Contingent receives it if the primary can’t.
Keep it current
Update beneficiaries after marriage, divorce, or a new child — the policy overrides your will.
Common exclusions
- Naming a minor directly (use a trust or custodian)
- Forgetting to update after divorce
Tips
- Name both primary and contingent beneficiaries.
- Update after major life events.
- Use a trust for minor children.
Frequently asked questions
Can I have multiple beneficiaries?
Yes — you can split the benefit by percentage.
Does my will override the policy?
No — the beneficiary designation controls.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Life Insurance guide
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