A life insurance policy can list more than one primary beneficiary at the same time. These beneficiaries receive the death benefit simultaneously, not in any priority order, unless the policy says otherwise.
You can divide the benefit in either of these ways:
• By percentage, such as 50 percent to one person and 50 percent to another
• By fixed amounts, if the policy allows it
• By equal shares, if no percentages are specified
Most policies default to equal shares if percentages are not listed, but relying on defaults is risky.
Primary vs Contingent Beneficiaries
It is important to understand the distinction:
Primary beneficiaries
These are the people or entities who receive the payout first. If you name two primary beneficiaries, both are paid.
Contingent beneficiaries
These only receive the benefit if all primary beneficiaries are deceased, disqualified, or unable to receive the funds.
Example:
You name your spouse and your child as 50 percent primary beneficiaries, and your sibling as the contingent beneficiary. The sibling receives nothing unless both primary beneficiaries cannot take the benefit.
Common Problems When Two Primary Beneficiaries Are Named
Naming multiple primary beneficiaries is legal, but it increases the chance of disputes if the paperwork is sloppy or outdated. We see problems when:
• Percentages do not add up to 100 percent
• One beneficiary dies and the policy is never updated
• The policyholder divorces or remarries
• The designation conflicts with a divorce decree or court order
• The change was made shortly before death and capacity is questioned
When insurers are unsure who should be paid, they often delay payment or file an interpleader lawsuit, forcing beneficiaries to fight it out in court.
What Happens If One Primary Beneficiary Dies First
This depends on the policy language.
Some policies automatically reallocate the deceased beneficiary’s share to the surviving primary beneficiary. Others send that share to the contingent beneficiary. In some cases, the deceased beneficiary’s portion goes to the insured’s estate.
This is one of the most common causes of denied or delayed claims.
Can Having Two Primary Beneficiaries Lead to a Denial
Yes, it can. Not because multiple beneficiaries are illegal, but because ambiguity creates risk for the insurer.
If the designation is unclear, contested, or inconsistent with state or federal law, the insurer may refuse to pay anyone until a court decides. This is especially common in cases involving:
• Ex-spouses and new spouses
• Late-life beneficiary changes
• Allegations of undue influence or fraud
• ERISA governed employer policies
How to Reduce the Risk of Disputes
If you are naming two or more primary beneficiaries, best practices include:
• Listing full legal names and relationships
• Assigning clear percentages that total 100 percent
• Naming at least one contingent beneficiary
• Updating designations after marriage, divorce, or death
• Coordinating the policy with divorce decrees and estate planning
When Legal Help Is Needed
If a life insurance claim is denied or delayed because of multiple beneficiaries, or if the insurer files an interpleader, legal representation is critical. These cases turn on contract language, state revocation laws, and sometimes federal ERISA rules.
If you are dealing with a denied or disputed life insurance claim involving multiple beneficiaries, we can step in, force clarity, and fight for payment.
If you want, I can also provide:
• A short consumer version for FAQ pages
• An ERISA specific version
• A version focused on ex-spouse vs spouse disputes