what would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy?

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Answer 1

What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy? The advantages of naming a secondary beneficiary in a will are as follows: It may save a will from probate, avoids confusion if the primary beneficiary dies first, and provides another option if the primary beneficiary is unable to inherit.

Who are the primary beneficiaries?

A beneficiary is a person or entity that you legally name as the recipient of the benefits from your financial products. That is the death benefit paid by your life insurance policy if you die. That is the balance of your assets in your retirement or investment accounts. A primary beneficiary is a person (or persons) who receives the death benefit from your life insurance policy first, usually your spouse, children, or other family members. After your death, your assets are distributed to a primary beneficiary. At your death, your primary beneficiary must be you or an existing trust. If you die with no surviving primary beneficiaries, a contingent beneficiary will inherit your assets.

Who are the secondary beneficiaries?

A secondary beneficiary, also known as a contingent beneficiary, is a person or entity who inherits assets under a will, trust, or account (e.g., insurance policy or annuity) when the grantor dies before the primary beneficiary. A secondary or contingent beneficiary inherits assets only if certain conditions are met, such as the primary beneficiary's death or the primary beneficiary's decision to reject their inheritance. If a primary beneficiary cannot be identified when the grantor dies, the assets may pass to the secondary beneficiary. The requirements and time required to locate the primary beneficiary differ depending on the account or legal document that governs the assets.

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Related Questions

most companies practice strong prm to forge long term relationships with channel members what does prm stand for

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PRM stands for Partner Relationship Management. Partner Relationship Management (PRM) is a type of software that helps companies build, maintain, and optimize relationships with their channel partners. By using PRM, companies can manage end-to-end partner relationships, including onboarding, communication, and performance tracking.

PRM provides a centralized platform for companies to manage all aspects of their relationships with partners. It helps companies better understand their partners, better manage their partner relationships, and provide better incentives and rewards for partners. PRM also provides visibility into partner performance and performance trends, allowing companies to more easily identify areas for improvement. By utilizing PRM, companies can cultivate strong, long-term relationships with their channel partners and boost partner performance.

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which of the following premortem actions can increase the liquidity of a decedent's estate? making certain that a client's will is executed with all of the required legal formalities stating reasons in a client's will why a close family member is not receiving any part of the client's estate urging a client to keep written current records of payments made by the client on debts owed to third parties urging a client to require written security for a promissory note given to the client for assets purchased from the client a) i and ii b) iii and iv c) i, ii, and iv d) i, ii, iii, and iv

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Option (b)  iii and iv is the answer.  Liquid of a decedent's assets are objects that can be easily converted into cash. In fact, funds held in a savings or checking account are considered assets.  

Why is it important to have liquid assets?

To explain how fluid, adaptable, and changeable an asset is, it can be said to be liquid. Liquid assets are more easily convertible into cash and can be traded fast compared to more inflexible assets that can't. Other assets have varying levels of liquidity based on how quickly and/or easily they can be turned into cash.

Due to the constant requirement for cash to pay short-term obligations, a corporation must have liquid assets. A business can't operate without cash to pay its bills to suppliers or employees' wages.

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highest rate offered on a certificate of deposit from a bank

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Marcus by Goldman Sachs: $500 minimum to open, 3.75%-3.70% APY, 6 months to 6 years. Discover Bank: $2,500 minimum to open, 1.50% - 4.40% APY, 3 months - 10 years. Popular Direct: $10,000 minimum to open, 4.10% to 4.55% APY, 3 months to 5 years.

How Many CD Terms Exist?

When looking for a certificate of deposit (CD), you'll notice that many banks and credit unions offer them in a variety of terms and maturities. Each provider can set their own terms and interest rates, and there is considerable variation among providers in this regard. A few term lengths, however, have become fairly standard. In this article, we'll look at the most common CD terms and show you how to construct a CD ladder using staggered-term CDs as a hedge against interest rate changes.

KEY LESSONS

Certificates of deposit (CDs) are available in a range of terms and maturities.

The term of a CD determines how long you must leave your money in the CD before you have free access to it again.

Banks and credit unions, for example, are free to set their own terms for CDs. Three months, six months, one year, two years, three years, and five years are some of the most common CD terms.

Consider building a CD ladder if you want to hedge against interest rate changes and have access to a portion of your money every year.

Understanding CD Terminology

When you buy a CD, you agree to keep your money in it for a specific amount of time, known as the CD's term. In exchange, the bank or credit union that issues your CD will pay you a fixed interest rate on your money, which is typically higher than the interest rate on other types of savings accounts. The disadvantage is that your funds are not liquid.

If you need to withdraw it before the CD's term expires, you'll usually face steep penalties.

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the statement of cash flows classifies items as multiple choice question. operating and nonoperating. current and noncurrent. recurring and nonrecurring. operating, investing, and financing.

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Operating, investing, and financing operations are the three primary categories into which the statement of cash flows divides the cash inflows and outflows.

What is a business finance example?

This includes making purchases and sales, borrowing money, keeping track of accounts, investing, transferring funds between accounts, refinancing assets, and becoming public. IPOs are read more. Companies can raise funds through an initial public offering (IPO) by trading their shares on a stock exchange.There are two primary types of external finance: equity financing, which is money provided in exchange for a portion of ownership and potential future earnings, and debt financing, which is cash that must be repaid, typically with interest.

The issue and repayment of equity, the payment of dividends, and the issuance

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Discover the Cash Flow Statement MCQs; for the benefit of the students, the answers to these multiple-choice questions are provided.

What is a statement example?

While it is true that bananas are boneless, I still enjoy them for their flavour and nutritional value more than their lack of bones. Therefore, if I stated, "I prefer bananas because they have no bones," I would be lying. Because of this, it is a statement to say "I enjoy bananas because they have no bones." A statement is a directive issued to the computer that tells it to carry out a specific task, like display something on the screen or gather input. A succession of assertions make up a computer programme.

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what is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?

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The most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels is a cost-benefit analysis.

A cost-benefit analysis is a tool used to evaluate the overall economic efficiency of a project or policy by comparing the costs and benefits of the program.

It allows policymakers to compare the monetary value of the benefits of the program to the costs of implementing it. This can help to determine whether the program is likely to lead to an overall improvement in living standards and higher income levels for the targeted population. It is important to note that a cost-benefit analysis is not a perfect test, as it has some limitations, such as difficulty in estimating the value of non-monetary benefits, and the lack of consensus on how to value certain benefits or costs.

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all of the following topics fall within the study of microeconomics except a. the impact of cigarette taxes on the smoking behavior of teenagers. b. the role of microsoft's market power in the pricing of software. c. the effectiveness of antipoverty programs in reducing homelessness.

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Option D, The influence of the government budget deficit on economic growth is the one that doesn't come from microeconomics.

Microeconomics focuses on the smallest possible scale of an economy, the level at which individuals make production, consumption, and other economic decisions. In microeconomics, the focus is on the unique aspects of each factor.

In the main, discussions of economic expansion refer to the economy as a whole. When the topic of economic expansion is broached, all ideas about the economy as a whole are included.

In addition, the government is a legitimate organization with the authority to control the economy as a whole. Consequently, this idea has zero bearing on the study of microeconomics.

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The right way of asking the question is:

All of the following topics fall within the study of microeconomics except:

a. the impact of cigarette taxes on the smoking behavior of teenagers.

b. the role of Microsoft s market power in the pricing of software.

c. the effectiveness of antipoverty programs in reducing homelessness.

d. the influence of the government budget deficit on economic growth.

ivan has inherited his mother’s 1963 chevrolet corvette, which he values at $45,000. he decides that he might be willing to sell it, so he posts it on craigslist for $55,000. samantha is interested and willing to pay up to $72,000 for one, so they agree on a price of $55,000 for the car. Would Ivan and Samantha want to voluntarily engage in trade? How much economic surplus is created for both of them as a result of this exchange? What is the total economic surplus?

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The total economic surplus will be $27,000 from the exchange between Ivan & Samantha.

What is economic surplus?The combined benefit, which is sometimes referred to as "total welfare," is referred to as economic surplus. It is the sum of the gains that a consumer or producer receives from economic activity. Total surplus or community surplus are two other names for it.Market wellness is evaluated using this economic metric. Consumer is receiving a surplus when they acquire an item at a price that is lower than what they would be willing to pay for it. A surplus is earned by a producer when they sell a product for more than the minimum price they are willing to sell it at.The laws of supply and demand govern the surplus of the economy. Customers want to feel like they're getting a good deal, while businesses want to make as much money as possible without losing them.The market is in "equilibrium," or allocative efficiency, when consumers' and producers' supply and demand are in good shape.

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