I have a life insurance question.Does anybody know what contingent beneficiary is?

The contingent beneficiary is a backup plan in case there is no primary beneficiary who is alive to take the death claim.

For example, lets say you are married. You would list your spouse as your primary beneficiary. But in case she dies before you do, you can name someone as a contingent beneficiary (people usually list their children). A beneficiary doesn't have to be family members. It can be anyone you want it to be.

That's the person who gets the money if the beneficiary isn't available.

I think contingent beneficiary is like a secondary beneficiary. It would be the person you want to be beneficiary in the case that your primary beneficiary pre-deceases you (and you didn't have the opportunity to change it yet.)

For instance, if you named a spouse as primary beneficiary, but both you and the spouse were killed in an accident at the same time, then the proceeds from the life insurance would go to the contingent beneficiary.

That is a "back-up" beneficiary who would receive the insurance proceeds if the primary beneficiaries died prior to the insured person's death.

Beneficiaries work in this fashion:

Primary, contingent and then tertiary.

Primary beneficiaries get 100% of the assets split amoung them as you set forth in the paperwork.
If a primary dies, the assets are split amoung the surviving beneficiaries.
If all primary beenficiaries die, the contingent beneficiaries get the assets. Contingents follow the same pattern as above.
Then if they all die, tertiary beneficiaries take possesion of the assets and follow the same pattern as the other two.
If all beneficiares die, the assets become part of your estate and a judge decides who gets them.

It's honetly always easier to establish a trust and make the trust beneficiary. Just make sure you have enough assets to deem a trust neccesary.

The Contingent Beneficiary (also known as Secondary Beneficiary) will receive the proceeds of the life insurance policy if the Primary beneficiary does not outlive the Insured Person.

If a beneficiary is convicted of murdering the insured, the beneficiary cannot collect the death benefit. The insured's estate would receive the benefit.

I hope that helps! Best of luck to you.

A beneficiary specified by an insurance contract holder who will receive the benefits if the primary beneficiary has died at the time the benefit is to be paid.

Jared Balis
http://www.utahinsurance.org
http://www.myinsurancequotes.net