When does a ‘contingent beneficiary’ receive the proceeds of a Life insurance policy?
A. Only in the event of a Common Disaster, where both the insured and the primary beneficiary die as a result of the same accident B. When the primary beneficiary has died before the insured dies and no new primary beneficiary has been appointed C. When the primary beneficiary is under the legal age of 18 D. When the insured dies before the primary beneficiary dies
When the primary beneficiary has died before the insured dies and no new primary beneficiary has been appointed
Under Common Disaster, the proceeds of a Life insurance policy will still go to the primary beneficiary if they outlive the insured by a specified number of days, often 30. However, if there is no primary beneficiary designated on a Life insurance policy at the time of an insureds death, the proceeds will go to the contingent beneficiary. Underage children may be designated as primary beneficiaries, although they cannot sign a release.