Contingent Beneficiary
A secondary beneficiary who will receive the death benefit if the primary beneficiary is deceased or cannot be located.
Detailed Explanation
Naming a contingent beneficiary ensures that the death benefit will still be paid out even if the primary beneficiary is no longer living.
Practical Example
When John named his wife as his primary beneficiary, he also named his sister as the contingent beneficiary. This means that if his wife were to pass away before him, the death benefit would then go to his sister.
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