Related Definitions
What is a Primary Beneficiary?
The person, or group of people, who is first in line to receive the proceeds from a life insurance policy upon the policyholder’s death.
The first individual or entity designated to receive benefits from a will, trust, or insurance policy upon the death of the policyholder or decedent. Primary beneficiaries have the highest priority in the distribution of assets, and their rights to inherit are typically protected by law. Understanding the designation of primary beneficiaries is crucial for estate planning, as it determines how assets are allocated and can influence family dynamics and potential disputes.
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