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Tertiary Beneficiary: Everything You Need To Know

What is a Tertiary Beneficiary?

A tertiary beneficiary receives benefits from a life insurance policy after the primary and secondary beneficiaries have been given their payouts. This role can be a helpful way to ensure that everyone who should benefit from the procedure does so. 

To designate a tertiary beneficiary, you must name them in your policy. You can call anyone your tertiary beneficiary, including another family member, a friend, or a charitable organization.

While most life insurance policies have primary and secondary beneficiaries, none include tertiary beneficiaries. If you are still determining if your policy has this designation, you can check with your life insurance company.

There are a few reasons why you might name this beneficiary. One reason is that the primary and secondary beneficiaries may pass away before you do. Another reason is that you may want to leave money to someone whose name doesn’t appear as one of the primary beneficiaries.

What does Tertiary Beneficiary mean in an Insurance Policy?

In an insurance policy, a tertiary beneficiary receives benefits after the primary and secondary beneficiaries have received their payouts. In this case, the third one would receive the life insurance proceeds.

Therefore, this third receptor’s name – a person or an organization – would have to appear in the policy.

Want to learn more definitions from Valur? Check out this post.

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