Although it may be an uncomfortable topic, beneficiaries are individuals you designate to receive a benefit if you become deceased. You may designate one or more individuals to receive any death-related benefits, such as a retirement benefit, life insurance benefit, or funds from your FSA.
Most benefits allow a participant to designate multiple beneficiaries with either a primary or contingent designation. A primary beneficiary receives the benefit when you become deceased. If more than one individual is designated as a primary beneficiary, funds are split evenly between them. Contingent beneficiaries only receive the benefit in the event that both you and the primary beneficiaries are also deceased. It is important to note that an individual cannot be both a primary and contingent beneficiary. In most cases, you may have as many primary and/or contingent beneficiaries as desired.
By: Brenda Langdon
