Which statement correctly defines the Contingent beneficiary in a life policy?

Which statement correctly defines the Contingent beneficiary in a life policy?

• A. The primary beneficiary
• B. The secondary beneficiary who receives if the primary predeceased
• C. The third in line
• D. A rider beneficiary defined by the policy

Answer: (B)

The contingent beneficiary is the backup recipient in a life policy who will receive the death benefit if the primary beneficiary dies before the insured or cannot claim. This is why the description of the secondary beneficiary who receives if the primary predeceased is the best fit. The primary beneficiary is first in line, not contingent; “third in line” isn’t a standard term, and a rider beneficiary refers to someone named in a policy rider, not the backup concept.

The contingent beneficiary is the backup recipient in a life policy who will receive the death benefit if the primary beneficiary dies before the insured or cannot claim. This is why the description of the secondary beneficiary who receives if the primary predeceased is the best fit. The primary beneficiary is first in line, not contingent; “third in line” isn’t a standard term, and a rider beneficiary refers to someone named in a policy rider, not the backup concept.