Health and Life Insurance

Category - Annuities & Policies

A life insurance policy can have more than one beneficiary set-up in succession. If the primary beneficiary dies prior to the insured, which beneficiary would receive payments?
  1. The contingent beneficiary would receive the payments
  2. The tertiary beneficiary would receive the payments
  3. The secondary beneficiary would receive the payments
  4. Only one beneficiary can be named. Otherwise the insurance company receives the payments
Explanation
Answer: A - The contingent beneficiary would receive the payments if the primary beneficiary dies prior to the insured. A contingent beneficiary is designated by the insured individual. The contingent is the second in line for payments if the primary were to die. If neither the primary nor the contingent is alive when the insured dies, the tertiary beneficiary would receive the payments.
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