In finance, we often come across the term "secondary beneficiary" or "tertiary beneficiary". These are individuals who are designated to receive the proceeds of a financial asset in the event that the primary beneficiary is no longer alive. Essentially, they serve as a backup plan for the original beneficiary. This concept is important to understand as it ensures that the intended beneficiaries receive the assets in the most efficient and organized manner. It is crucial to carefully consider and designate secondary and tertiary beneficiaries when creating a financial plan.
