CARD T107
Primary Beneficiary
The first designated recipient of a death benefit. A spouse may be named as primary beneficiary.
How it works
A primary beneficiary is first in line under the designation. More than one primary beneficiary can be named, with stated percentages. A contingent beneficiary does not normally share while the primary recipients qualify for the entire benefit. Naming a beneficiary does not necessarily transfer ownership rights. [1] [9]
The designation gives Alex 60% and Blair 40% as primary beneficiaries. If both qualify and the net proceeds are $100,000, they receive $60,000 and $40,000.
Primary describes payment priority; revocable describes whether the owner can change the designation.
CARD T108
Contingent Beneficiary
A backup recipient if the primary beneficiary cannot receive the benefit under the designation. Children may be named as contingent beneficiaries.
How it works
A contingent beneficiary is a backup recipient under the policy’s designation. If the primary predeceases the insured, the contingent may take, subject to survival clauses and the actual wording. If no designated beneficiary qualifies, the policy’s default payment rules apply; do not assume every policy uses the same final recipient. [1] [9]
A spouse is sole primary and a sibling is sole contingent. The spouse dies before the insured. If the sibling meets the designation’s conditions, the sibling receives the benefit.
Contingent means backup, not a fixed percentage shared with an eligible primary.
CARD T109
Revocable Beneficiary
A beneficiary designation the owner can generally change without that beneficiary’s consent. Policy and legal restrictions still apply.
How it works
The owner generally can change a revocable designation without the beneficiary’s consent by following the insurer’s required process. Court orders, assignments, marital-property rules, or other legal restrictions can still matter. An informal wish or a will should not be assumed to replace the policy’s beneficiary-change procedure. [19]
An owner submits a valid beneficiary-change request replacing a revocable sibling beneficiary with a spouse. The sibling’s permission is generally unnecessary.
Revocable is changeable by the owner under the rules; it does not mean the beneficiary can change the policy.
CARD T110
Irrevocable Beneficiary
A beneficiary with rights that restrict changes without consent. Naming one limits the owner’s control over the designation.
How it works
An irrevocable beneficiary has protected rights that limit the owner’s ability to change the designation without consent. Depending on the contract and law, consent may also be needed for loans, assignments, surrender, or other acts affecting those rights. Irrevocable does not always mean impossible to change: required consent or legal authority may permit a change. [19]
An owner wants to replace an irrevocable beneficiary. The existing beneficiary’s consent may be required before the insurer can recognize that change.
Irrevocable limits unilateral owner control; it is not the same as naming a contingent recipient.
APPLY THE TERMS
Practice questions
Select an answer, then check it to see why each option is right or wrong.
T107 · Primary Beneficiary
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T108 · Contingent Beneficiary
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T109 · Revocable Beneficiary
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T110 · Irrevocable Beneficiary
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Sources & further reading
Original explanations and practice scenarios informed by the following regulatory, legal, and product resources. State examples are not presented as nationwide deadlines or requirements.