Who receives the death benefit if the primary beneficiary cannot or will not receive it?

• A. The primary beneficiary
• B. The contingent beneficiary
• C. The insured
• D. The insurer

Answer: (B)

In life insurance, the benefit is paid first to the primary beneficiary, but there is a backup named to step in if the primary cannot or will not receive the benefit. That backup is the contingent beneficiary. So when the primary cannot accept the payout—whether they’re unavailable, unable to be located, predeceased, or refuse to claim—the contingent beneficiary becomes the next in line to receive the death benefit.

It's helpful to picture the schedule: primary is first in line, contingent is next. If neither can take the benefit (for example, both are unavailable or no contingent is named), the policy proceeds may go to the insured’s estate or follow the policy's other designated rules, depending on the language of the contract.