1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    The primary beneficiary named by the policy owner receives life insurance proceeds when the insured dies. It is a good idea to also name a contingent (back up or secondary) beneficiary and review the policy every three years with a life insurance professional.

    Over time things may change e.g. beneficiaries sometimes predecease the insured. If there is no named, living beneficiary of the life insurance policy when the insured dies, and no contingent (secondary) beneficiary, the proceeds are paid to the estate. It is not an ideal outcome since this subjects the proceeds to probate which would not have occurred if there was a beneficiary.
    Answered on May 17, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    A secondary beneficiary for life insurance is also called a contingent beneficiary. A secondary beneficiary is not the same as being the second primary beneficiary listed. If there is more than one primary beneficiary, the death benefit is split among the primary beneficiaries. A secondary, or contingent, beneficiary only receives the death benefit if all primary beneficiaries are deceased.
    Answered on November 26, 2014
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