Quarterly premium payments increase the annual cost of insurance because interest to the insurer is decreased while the administrative costs are increased. In Quarterly premium payments, the actuaries are entrusted with the responsibility of ascertaining the correct premium of an insured.

When can a policyowner change a revocable beneficiary? With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.

Which of the following terms best describes the frequency that Martin pays his premiums? Premium payment mode describes the frequency that premiums are paid.

For your primary and contingent beneficiaries, you’re generally allowed to designate multiple parties. If you want to have multiple primary beneficiaries and/or multiple contingent beneficiaries, you must specify the percentage of the account that is to go to each party.

What Happens If There Is No Contingent Beneficiary? If the primary beneficiary is dead, can’t be found, or refuses the asset, and there is no contingent beneficiary, then the asset goes into your general estate and will need to go through probate. If you have a will, the asset will go to those designated in the will.

Typically, a spouse who has not been named a beneficiary of an individual retirement account (IRA) is not entitled to receive, or inherit, the assets when the account owner dies.

If you have multiple primary beneficiaries and one dies, the death benefit will be split among the remaining beneficiaries. If they’re co-beneficiaries, they would each get 50% of your death benefit should you die. But if either one dies before you, the other will get the full death benefit.

Your primary beneficiary is first in line to receive your death benefit. If the primary beneficiary dies before you, a secondary or contingent beneficiary is the next in line. Some people also designate a final beneficiary in the event the primary and secondary beneficiaries die before they do.

Primary & secondary beneficiaries A primary beneficiary receives your assets after your death. Your primary beneficiary must survive you (or be a charity or an existing trust). A secondary or contingent beneficiary will inherit your assets only if you have no surviving primary beneficiaries.

Primary and contingent beneficiaries There are two types of beneficiaries: primary and contingent. A primary beneficiary is the person (or persons) first in line to receive the death benefit from your life insurance policy — typically your spouse, children or other family members.

The primary beneficiary is the person or entity who has the first claim to inherit your assets after your death. The only way a contingent beneficiary inherits anything from the account or policy is if the primary beneficiary or beneficiaries have predeceased you or otherwise can’t be found.

Beneficiary Designations Supersede Wills and Trusts.

And FYI: You can have more than one primary beneficiary and more than one contingent beneficiary; you simply need to designate what percentage of your life insurance proceeds you want to allocate to each of your primary beneficiaries.

Many people have prior spouses or deceased relatives who are named as beneficiaries of these accounts. The problem is that these beneficiary designations are legally binding, and they supersede your will. The asset will go to the person you name on the form regardless of what your will says.

To determine where an individual’s assets and possessions will go when they die, they need to make plans to administer their estate. Beneficiaries can also acquire a trust from the deceased individual. There may be benefits to trusts due to varying types of trusts.

Beneficiary Rights to Trust Information You are entitled as a beneficiary to receive information that the Successor Trustee is managing the Trust properly. You have the right to protect the assets the settlor/grantor has bequeathed to you.