4.6 Naming Individuals as Beneficiaries
We've looked at entities other than persons as beneficiaries, which are certainly not as commonly used. Now we'll look at the most common designation - that of a loved family member. The primary beneficiary is the policyowner's first choice (most typically a spouse*).
*Under Florida law, unless a specific exception applies, a beneficiary designation naming a former spouse is void at the time the policyholder's marriage is judicially dissolved, so long as the beneficiary designation was made prior to the court order.
If the primary beneficiary predeceases the insured, the proceeds are then paid to the contingent beneficiary (aka successor beneficiary or secondary beneficiary - most typically the children); and if both the primary and the contingent beneficiaries are predeceased, then the proceeds would be payable to the tertiary beneficiary (third choice); and so on. There is no limit to the number of beneficiaries.
If there is more than one beneficiary named and the owner wants to see that they all get a share, he can stipulate in the contract just who gets how much. For instance, the policy may state something like the following:
"75% of the policy proceeds are to go to my wife and 25% are to go to my sister. In the event of the death of one, the surviving beneficiary shall receive the other's share of the proceeds."
Per Capita & Per Stirpes - Take a moment to fully understand the following charts. You will need to be familiar with both.
