Can I add a secondary beneficiary to my life insurance policy?

Absolutely. Adding a secondary beneficiary to your life insurance policy is possible and can be approached in several ways, tailored to your specific goals.

The structure of beneficiaries in life insurance policies typically includes Primary Beneficiaries and Contingent Beneficiaries.

Primary Beneficiaries are the initial recipients of the insurance proceeds upon the insured individual's demise. You have the flexibility to appoint either a single primary beneficiary—who would inherit 100% of the proceeds—or multiple primary beneficiaries, allowing you to distribute the proceeds among them in any proportion you decide (for example, dividing equally among two beneficiaries would allocate 50% of the proceeds to each).

Contingent Beneficiaries, often referred to as secondary beneficiaries, are the alternative recipients of the proceeds if the primary beneficiaries are deceased at the time of the insured's passing. This scenario is particularly considered in cases of simultaneous or closely timed deaths, such as in a common disaster. Similar to primary beneficiaries, you can determine the exact share of the proceeds each contingent beneficiary receives.

This layered beneficiary designation ensures that your life insurance proceeds are distributed according to your wishes, providing you with peace of mind and offering clear guidance on the allocation of your assets.