Practice Quiz

Health and Life Insurance

Category - Annuities & Policies

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When Bill dies Janell receives the death benefits. If Janell dies before Bill, Cody and Steve will receive equal benefits upon Bill’s death. Which of the following is true?
  1. Janell is the primary to Bill’s insurance policy, Cody and Steve are contingent beneficiaries
  2. Bill is the primary beneficiary, Janell is the contingent, and Cody and Steve are tertiary
  3. Janell is Bill’s primary beneficiary: Cody and Steve are Janell’s primary beneficiaries
  4. Cody and Steve are the contingent beneficiaries to Janell’s policy
Explanation
Answer: A - Janell and Bill are primary beneficiaries for each other. The living spouse will receive payments from the deceased spouse’s policy. Cody and Steve are contingent beneficiaries on both Janell and Bill’s policies. Upon the death of the surviving spouse, Cody and Steve will receive any remaining payments from the first policy as well as the payments from the second policy.
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