Beneficiary
Updated for plan year 2026
In plain terms
A beneficiary is the person, people, or entity (such as a trust) you designate to receive your policy's death benefit. You can name primary and contingent beneficiaries and split the benefit by percentage. The designation on the policy controls who gets paid (it overrides your will), so keeping it current matters.
A plain example
You name your spouse as primary beneficiary and your two children as contingent beneficiaries split 50/50. If your spouse outlives you, they receive the benefit; if not, it passes to the children.
Why it matters
Because the beneficiary designation overrides a will, an outdated one (an ex-spouse, a deceased relative) can send the money to the wrong place. Reviewing it after major life events keeps the payout on track.
A common point of confusion
'My will decides who gets it.' For life insurance, the policy's beneficiary form controls, not your will.