In plain English
It names who is next in line for the policy benefits. The person or organization is chosen ahead of time and receives them only if the primary beneficiary dies before the insured or cannot or does not receive them.
In context
Here, it identifies a beneficiary designation as the backup category for the person or organization named to receive policy benefits if the primary beneficiary dies before the insured or otherwise cannot or does not receive them.
- Situation
- Enrolling in policies and reading coverage, member, beneficiary, and effective-date labels
- What it communicates
- identifies one beneficiary category in the designation section
Meaning limits
The term alone does not say who has been named or whether that person or organization will ever receive any benefits.
Examples
“She named her brother as the contingent beneficiary in case her husband, the primary beneficiary, died before she did.”
“After the update, her niece remained the contingent beneficiary on the policy even though the primary beneficiary had changed.”