The Primary Beneficiary is the person (or persons) designated to receive the death benefit from a life insurance policy upon the insured’s death. This individual has first claim to the policy payout, which can support their financial needs after the policyholder passes.
If the primary beneficiary cannot claim the benefit, it usually goes to a contingent beneficiary, if one is named. Choosing a primary beneficiary is a crucial part of life insurance, as it directly impacts how the policy’s financial support is distributed.