What is a 'contingent beneficiary' in a life insurance policy?

Question: What is a 'contingent beneficiary' in a life insurance policy?

Answer options:

• A beneficiary who cannot be changed without their consent. ✅ A beneficiary who receives the proceeds only if the primary beneficiary predeceases the insured.
• A beneficiary who is under the age of 18.
• A beneficiary whose designation is revoked by divorce.

Correct answer: A beneficiary who receives the proceeds only if the primary beneficiary predeceases the insured.

Explanation: A contingent (or secondary) beneficiary receives the death benefit only if the primary beneficiary dies before the life insured.