What happens if a primary beneficiary predeceases the insured?

When a primary beneficiary predeceases the insured, the policy proceeds typically flow to the contingent beneficiary. The contingent beneficiary acts as a secondary choice in the event that the primary beneficiary is unable to receive the benefits for any reason, including death before the insured. This design ensures that the policy funds go to someone else designated to receive them, rather than being left without a recipient.

The provision for a contingent beneficiary is crucial in estate planning and life insurance, as it helps avoid complications that could arise if there is no clear beneficiary available at the time of the insured's death. This mechanism also helps ensure that the insured's intentions regarding the distribution of their assets are honored, providing financial support to the desired individuals even if circumstances change unexpectedly.