CARD Q038
The sole primary beneficiary dies before the insured. A living contingent beneficiary remains named, with no assignment or other conflicting claim. Who normally receives the death benefit?
- The contingent beneficiary
- The primary beneficiary’s estate
- The primary beneficiary’s surviving children
- The insured’s estate
The contingent beneficiary
A contingent beneficiary is the next eligible recipient when the primary beneficiary cannot receive the proceeds, subject to policy and legal requirements.
Why each choice is right or wrong
A. The contingent beneficiary
Correct. A contingent beneficiary is the next eligible recipient when the primary beneficiary cannot receive the proceeds, subject to policy and legal requirements.
B. The primary beneficiary’s estate
Incorrect. The deceased primary beneficiary’s estate does not ordinarily displace a valid contingent beneficiary here.
C. The primary beneficiary’s surviving children
Incorrect. The primary beneficiary’s children do not automatically replace the named contingent beneficiary.
D. The insured’s estate
Incorrect. The insured’s estate is not the normal recipient when a valid living contingent beneficiary remains.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.