A beneficiary is a person to whom or an organization to which an inheritance passes as the result of being named in a will, life insurance policy, or annuity.

Beneficiaries are assigned for the transfer of assets from the owner upon death. For example, a husband may name his wife as the primary beneficiary of his insurance policies. However, if the primary beneficiary or beneficiaries are not alive, then the assets will probably pass to the contingent beneficiaries.

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