The term “contingent beneficiary” is used frequently in wills, trusts, and insurance policies. A beneficiary is someone who benefits from a gift, such as from a will, trust, or insurance policy. When the term “contingent” is used, it means there are certain circumstances that must occur for the beneficiary to receive the benefit. The contract or policy will state who the beneficiaries are, and if any contingencies to receiving the benefits exist.

Sometimes on tests you will see “which of the following best describes a contingent beneficiary?”

What they are usually looking for is what sets contingent beneficiaries apart from primary beneficiaries. They want you to know that contingents do not receive any assets or benefits unless the primary is unable to accept the benefit.  Sometimes, there are stipulations to a person receiving a gift or benefit. As a result, their failure to comply with the stipulations allows for a contingency beneficiary to take the benefit instead.

What is a Primary Beneficiary?

A primary beneficiary is the person who you would most like to have your asset(s) if you die.

Do you have any assets, such as life insurance policies, 401k accounts, or trust accounts? Then, you can add a beneficiary to the policy or account. That way they take ownership of the asset upon your death.

In most cases, the primary beneficiary is a spouse or child, but it doesn’t have to be. You can choose whoever you want to be the primary beneficiary. If the primary beneficiary cannot accept the gift, then it is given to the secondary beneficiary. However, you must have one listed. If you don’t have a contingency beneficiary listed, it depends on the terms of the account what happens to your assets. Also, it will depend on the laws in your state. Sometimes, the next of kin will have rights to the inheritance if there is no will and no beneficiaries.

What is a Contingent Beneficiary in Life Insurance?

Life insurance policies typically gives you the option to add multiple beneficiaries. This is to protect you in the case that one of the beneficiaries is unable to accept the policy benefits. The primary beneficiary for a life insurance policy is the person you assign to receive the benefits upon your death.

The secondary beneficiary is often referred to as the contingent beneficiary. They are given the benefit if the primary is not alive or cannot accept the benefit for any reason.

In addition, life insurance policies allow you to add as many beneficiaries as you want. Are you are trying to decide how many contingency beneficiaries you need? Then, consider the people you’ve chosen, and whether there is a good chance they would pass away before you. If anyone on your beneficiary list passes away, or becomes unable to accept your policy benefit, you should update your policy immediately and add an additional beneficiary.

What is a Contingent Beneficiary in IRA/Roth IRA?

The beneficiaries of your financial assets work in same way as they do with life insurance. If you have assets that have beneficiaries listed, you will have a primary beneficiary. In addition, hopefully you will have contingent beneficiaries. The contingent beneficiary of your IRA account is one that will receive the funds if the primary beneficiaries are not able to claim the assets for any reason. The same is true for 401k accounts.

What is a Contingent Beneficiary in a Trust Account?

Trust accounts can be a little more complicated. Especially, if the trust account is being held for someone that you have already named. Third parties usually hold trust accounts. Typically, you will pay a third party to hold the account until your stipulations have been met. Then, they release the assets to the beneficiary.

The complications with adding contingency beneficiaries to a trust account occurs when the primary beneficiary is already listed as a joint owner. This considered an irrevocable trust, and they also have to approve who the contingent beneficiaries are. If you are trying to set up beneficiaries for your assets, you can speak with an estate attorney. They can help you evaluate your assets and make a plan for listing beneficiaries.

What is a Tertiary Beneficiary?

A tertiary beneficiary is similar to a contingent beneficiary. However, they only receive the assets if the primary and contingent beneficiaries are unable to accept the assets. It is very rare that a tertiary will receive any assets. But, if you are extra cautious about where your assets end up, you can set up a tertiary beneficiary. Also remember, you don’t have to name a person as a beneficiary. You can name trust accounts, business (such as the funeral home), and even charities as your beneficiaries.

Can you name multiple primary and contingent beneficiaries?

With almost all assets, you can name multiple beneficiaries. This allows the asset to be split amongst the all beneficiaries. Also, you can also choose the percentage that each beneficiary receives. For example, let’s say you have a life insurance policy. You want to leave it to your two adult children. So, you can list both of them as primary beneficiaries, receiving 50% of the benefit each. Note, when you are splitting assets, you have to decide how you want the asset split if one of the primary beneficiaries is not able to accept the asset.

For example, let’s say you leave your life insurance policy to your two children. However, one of them passes at the same time as you. In this instance, you can have the insurance policy set up to give your living child the full 100% of the policy. Or, you can allow that 50% to go to the children or spouse of your child that passed.

This is also possible in the case of real property, or real estate. Although, it can complicate things when the beneficiaries are wanting to sell. Or, if they do not accept their portion of the real estate, if the real estate is not able to be physically split. Just like you can have multiple primary beneficiaries, you can also have multiple contingent beneficiaries to receive split assets.

Final Thoughts on Contingent Beneficiaries

To sum it up, contingent beneficiaries are secondary to primary beneficiaries. They receive benefits only when certain events take place to displace the first named beneficiaries.

So, we hope this clears up the differences between beneficiary designations on legal documents, including life insurance policies.

Here are a few articles that might be helpful in your research:

• Life Insurance Basics

• Final Expense Insurance Basics

• Retirement Planning

The post What is a Contingent Beneficiary? appeared first on Medicare Life Health.

Whether you are a curious researcher or a grieving funeral planner, understanding both modern and ancient funeral traditions will give depth to your process.

Funeral Tradition, Rituals and Practices: Modern and Ancient

Ancient Burial Traditions

Archeologists date burials back to the Paleolithic ago around 100,000 years ago. Discovered in Israel, a caved called Qafzeh housed several humans remains from the Paleolithic age.  It is assumed that the remains were purposefully buried at that location. The reasons for the burials remain a mystery, but the assumption of the purposeful act is based on the positions of the remains as well as the condition of the remains. Looking back at ancient civilizations, they all had rituals to memorialize the dead. SOURCE

Ancient Egyptian Burials

When people think of ancient Egypt, they often think of the tombs and mummification of the dead. Ancient Egyptian culture believed that the soul of the dead could take what they were buried with into the afterlife. This belief influenced burial practices until the civilization fell to the Roman empire.

Many of our preservation practices for the deceased come from Egypt. Ancient Egyptians believed that the body had to be as recognizable as possible so that the soul could find the body and their belongings in the afterlife. This led to the practice of embalming and mummification.

Not all Egyptians were treated equally, there was a cost to body preservation. (Just like we have costs associated with our modern funeral practices.) As a result, those without wealth had to settle for the bare minimum treatment for their deceased loved one.

Ancient Egyptian burial practices included the men and women of the family wearing a girdle and pounding on their chest through the streets upon the death of a loved one. They would then take the body to be embalmed and preserved.

Those that lacked wealth would use their old clothing to wrap the deceased. Those with the greatest wealth could afford hand carved boxes for their loved one, which would later be inscribed with afterlife directions. The wealthy would also get new cloth to wrap the body in and the embalming technique for the wealthy best preserved the body and the appearance. SOURCE

Modern Egyptian Burial Practices

Today, the population composition of Egypt is mostly followers of Islam. Consequently, most of them follow the burial practices of Islam. They do not focus on what the dead are buried with, unlike Ancient Egyptian times. Although they still build large buildings to house beloved leaders, these buildings must also be used for the community. Similarly, in Islamic faith, large buildings or tombs for the deceased are not allowed unless the buildings are for the greater benefit of the community. SOURCE

Ancient Greece Funeral Traditions

The ancient world had a lot of different practices and influences. In Greece, the mourning of death was a big event. It began with the deceased being dressed then laid in a bed in the house. People would visit the home and pay their respects. This is like today’s visitation or viewings. The family would then take the deceased to the cemetery in a procession.  The burial would be marked with a large monument that depicted the deceased’s life. SOURCE

Roman Funeral Practices

Roman and Greek funeral practices were very similar. Today’s funeral practices in western civilizations have clear ties and influence from Roman practices. Roman funerals included loud processions to signify a death. When a wealthy person died, the processions would even have several professional mourners who were paid to act distressed and devastated by the death.

There would also be actors to act like the ancestors of the deceased during the procession. Eulogies were done at funerals in Rome when the person was important or made a large impact on the family. This is something that is traditionally done in today’s western culture.

After the burial or cremation there would be a feast marking the family moving forward. The Romans also had specific days to remember the deceased. The remembering of the deceased allowed the deceased to remember parts of its life in the afterlife. SOURCE

Modern Burial Practices and Funeral Traditions

Cultures all over the world practice some form of funeral rituals. Many of today’s practices have been influences by ancient practices. Embalming, burials, cremation, processions, and viewings were all common in the ancient civilizations.

The techniques and options for these rituals have progressed along with society, but their roots still lay buried in the ancient world. As we find the body can be useful to the progression of society even after death, more and more people have began giving the rights of their body over to science and medicine. The act of donating ones body is a modern act, but there are still rituals, such as a celebration of life, that can be done even when the remains of the deceased are not present. SOURCE

Modern Day Funeral Planning

We use funeral traditions from all over for our modern funerals. If you are currently planning a funeral or pre-planning for one in the near (or far) future, here are some helpful resources:

• Full Funeral Planning Guide with a Checklist for Planning Your Own Funeral

• Planning and Budgeting for Funeral Costs – including average costs of a funeral.

• Covering Funeral and Burial Costs with Final Expense Insurance.

• A Guide to Caring for a Dying Parent.

The post Funeral Traditions: From Ancient to Modern appeared first on Medicare Life Health.

As of now, what age is considered elderly? We look at what it means to be elderly in the 21st century versus other times in history. In addition, we look at the reasons to embrace your place in life at any age.

“Old” at Any Age

In your 20’s, 30’s and 40’s, it’s fun to joke about being “old.” 25 year old’s remark how old they feel when they no longer enjoy going out and partying. 30 year old’s announce how old they are because they get excited about buying a new washing machine. 45 year old’s say they’re too old to keep working and are ready to cash in their 401k already.

However, as you truly age and enter your 50s and beyond, you’ll look back at what you used to think was old and laugh. So how old is old? What age is considered elderly? Let’s discuss.

“Elderly” in Popular History to Present Day

As NPR reports, Americans in the early 20th century believed that “elderly” was more socially acceptable and preferable over being called “old.” In 1918, Dr. William Brandy said “We like your use of the world elderly. Maybe we would have more friends now if we had not insisted upon anything old when we meant elderly.”

Interestingly, in 1956, the tables had turned. In response to a 20 year old writing about a 40 year old as “elderly” in a Washington Post story, the paper published a response article from the executive editor. In his post, he advised his staff on how to use the term.

“A lot of us old folks in our 50s do not like to be called elderly… When you are 16 you wonder how an old man of 30 manages to drag himself around. When you get to be 30, you feel that 60 is as old as Methuselah. When you get to be 60 you will think that the ‘aged’ are those in their 90s.”

Though the use of “elderly” has passed in and out of acceptance, it appears one thing is clear: your perception of old age relates directly to your current age.

Present Day Old Age

Nowadays, the beginning of old age depends on who you’re speaking with. AARP reported that a  study done in 2009 found that old age begins somewhere between 60 and 74. Folks who were under 30 at the time of the survey said that old age begins at 60, middle-aged participants agreed that 70 is the start of old age, and people over 65 years old said old age started closer to 74.

More recently in 2017, The U.S. Trust conducted a study wherein Millennials cited old age beginning at 59. In the same study, Gen Xers said it begins at 65, and Boomers and the Silent Generation said you’re officially old at age 73. The consistent theme here is that the younger you are, the younger you think old age hits. The older you are, the older you think you must be to be considered elderly.

Age Terminology

The definition of elderly is relatively ambiguous – “rather old, especially being past middle age,” according to Merriam Webster. 

It’s no wonder that there’s no consensus about what age is officially elderly. To get on common ground, let’s break down some age terminology, as defined by Elizz:

• Elderly – We’ve already defined elderly, but it’s important to note that the term typically has a negative connotation. It’s generally used to imply that someone is fragile or frail – no wonder people take offence!

• Old – Old is subjective, depending on who you’re speaking with. While referring to someone as “old” can be rude, referring to them as “older” is often seen as polite.

• Senior – People often give the word “Senior” a positive meaning. For example, the way a senior employee is respected and revered. It implies a wealth of knowledge, in addition to old age.

• Senior Citizen – In Western nations, people who are around 60 or 65 are considered senior citizens. It implies that a person is retired and has access to social assistance programs and discounts. However, some people may consider Senior Citizen rude in certain contexts.

• Geriatric – Geriatric refers specifically to medicine for people of old age. It’s typically used in the correct context, though it can carry the implication that a person is worn out or has a low life expectancy.

The Pros of Being an Elder

With all the negative connotations surrounding aging and age terminology, it’s no wonder people try to fight growing older. People tend to overlook all the great things that come with aging. When you’re feeling glum about getting older, consider the following benefits:

1. Retirement and senior assistance programs – To start, as we mentioned above, after a certain age you become eligible for social assistance programs. People generally see age 65 as time to retire and in the United States, you’re eligible for Medicare beginning at age 65.

2. Senior citizen discounts – Next, lots of retailers offer senior citizen discounts. The Senior List offers a huge, up-to-date list of all the places you can get a discount at as a senior. Who doesn’t like saving money?

3. Clearer priorities – As you age, you’re able to try out new things and decide what matters and what doesn’t. Being older means you’ve figured out what priorities matter to you. Mixed emotions and societal expectations no longer control you or influence your priorities.
   • (Interesting related read: Minimalism at different ages.)
   • (Also, Downsizing for seniors.)

4. You don’t care what people think of you – In the same vein, as you age, you realize people are too busy worrying about themselves to care about what you’re doing. And if they are watching what you’re doing, time has taught you that their opinions don’t matter.

5. Wisdom – Additionally, with so much life lived, you’ve had time to learn many of life’s lessons. You’re knowledgeable on more topics. You’ve built up a sense of good judgement. You understand how to manage your own emotions and you have a higher self worth.

6. You realize that age is just a number – Now, it’s true what they say: you’re only as old as you feel. As time passes and each birthday means less, the importance of your age decreases as well. Your age doesn’t say anything about your skills, competency, potential or performance.
   • After all, Nelson Mandela wasn’t elected president until the age of 75. In addition,
   • Additionally, Grandma Moses started painting at 76 and went on to be praised by JFK.

Conclusions on What Age is Considered Elderly?

In conclusion, no matter what phase of life you are in, words should not define how you feel or what you do.

Elderly is just a word.

You get to decide your age’s definition and how it affects your life.

Related Reading:

• Caring for a Dying Parent

• Caring for Elderly Parents

• How to Prevent Falls

• Gifts for Seniors

• Best Gifts for People in a Nursing Home

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