Who has a second claim to policy proceeds after the death of the insured, only after the primary beneficiary dies?

Who has a second claim to policy proceeds after the death of the insured, only after the primary beneficiary dies?

• A. Contingent beneficiary
• B. Primary beneficiary
• C. Secondary beneficiary
• D. Tertiary beneficiary

Answer: (A)

In life insurance, benefits are paid according to the beneficiary order. The primary beneficiary is first in line to receive the death benefit. If that person cannot receive it—because they predeceased the insured or is otherwise unavailable—the backup becomes eligible. The backup, or contingent beneficiary, has a second claim and will receive the proceeds only if the primary is not able to collect when the insured dies. So, the person described as having a second claim after the primary is the contingent beneficiary. If no primary exists, or if the contingent also cannot receive, a further (tertiary) beneficiary would step in, but the immediate concept being tested is the backup role of the contingent beneficiary.

In life insurance, benefits are paid according to the beneficiary order. The primary beneficiary is first in line to receive the death benefit. If that person cannot receive it—because they predeceased the insured or is otherwise unavailable—the backup becomes eligible. The backup, or contingent beneficiary, has a second claim and will receive the proceeds only if the primary is not able to collect when the insured dies. So, the person described as having a second claim after the primary is the contingent beneficiary. If no primary exists, or if the contingent also cannot receive, a further (tertiary) beneficiary would step in, but the immediate concept being tested is the backup role of the contingent beneficiary.