Who is considered a tertiary beneficiary?

A tertiary beneficiary is specifically defined as the individual, or entity, designated to receive benefits if both the primary and secondary beneficiaries are deceased at the time the policyholder passes away. This structure ensures that there is a succession plan for benefit distribution in the event of unforeseen circumstances affecting the primary and secondary beneficiaries.

Identifying a tertiary beneficiary is essential in estate planning, as it helps protect the insured's wishes regarding the allocation of benefits. By designating a tertiary beneficiary, the insured ensures that their benefits do not go unclaimed and that they are directed according to their intentions. This order of beneficiaries—primary, secondary, and tertiary—creates a clear hierarchy for the distribution of benefits, reducing confusion and potential legal disputes after the insured's death.