Who is the primary beneficiary?

Who is the primary beneficiary?

• A. The first in line to receive the death benefit upon the death of the insured.
• B. The person who pays the premiums.
• C. The insurer who issued the policy.
• D. The policyowner.

Answer: (A)

In life insurance, the person who is designated to receive the death benefit when the insured dies is the primary beneficiary—the first in line to receive the proceeds. This is the recipient chosen by the policyowner to be paid out upon death. The person who pays the premiums isn’t automatically the beneficiary unless named that way, and the insurer isn’t the beneficiary unless the policy specifies it. If the primary beneficiary cannot receive the funds (for example, they predecease the insured), the benefit typically passes to a contingent beneficiary or according to the policy’s instructions, rather than by default to the insurer or the policyowner.

In life insurance, the person who is designated to receive the death benefit when the insured dies is the primary beneficiary—the first in line to receive the proceeds. This is the recipient chosen by the policyowner to be paid out upon death. The person who pays the premiums isn’t automatically the beneficiary unless named that way, and the insurer isn’t the beneficiary unless the policy specifies it. If the primary beneficiary cannot receive the funds (for example, they predecease the insured), the benefit typically passes to a contingent beneficiary or according to the policy’s instructions, rather than by default to the insurer or the policyowner.