Who receives policy proceeds if both the primary and contingent beneficiaries predecease the insured?

Who receives policy proceeds if both the primary and contingent beneficiaries predecease the insured?

• A. The primary beneficiary
• B. The contingent beneficiary
• C. The tertiary beneficiary
• D. The policyowner

Answer: (C)

When life insurance proceeds are paid out, they go to the beneficiaries in order of designation. If the primary is alive, they get the benefit; if the primary dies, the contingent would get it; and if both the primary and the contingent have predeceased the insured, the next person named in the policy—the tertiary beneficiary—would receive the proceeds, assuming one is named. If no tertiary beneficiary is named, the funds typically revert to the insured’s estate and then to the heirs or according to the will or probate rules. The policyowner’s role is to name beneficiaries; they don’t automatically receive proceeds unless they’re named as a beneficiary.

When life insurance proceeds are paid out, they go to the beneficiaries in order of designation. If the primary is alive, they get the benefit; if the primary dies, the contingent would get it; and if both the primary and the contingent have predeceased the insured, the next person named in the policy—the tertiary beneficiary—would receive the proceeds, assuming one is named. If no tertiary beneficiary is named, the funds typically revert to the insured’s estate and then to the heirs or according to the will or probate rules. The policyowner’s role is to name beneficiaries; they don’t automatically receive proceeds unless they’re named as a beneficiary.