What Is a Beneficiary?
A beneficiary is a person or organization named to receive assets — such as money in a retirement account, a life insurance payout, or property under a will or trust — when the owner dies. Beneficiary designations on retirement accounts and insurance policies generally take priority over instructions in a will.
Primary vs. Contingent
The primary beneficiary receives the assets first; a contingent beneficiary receives them if the primary beneficiary has died or declines.
Keeping Them Current
Life events such as marriage, divorce, or births are common reasons to review beneficiary designations.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.