What is the meaning of contingent in a life insurance policy?

Best Answer:

steve: The term "contigent" as applied in a life insurance policy usually refers to the "Contingent Beneficiary".

A "Contingent" or "Secondary" Beneficiary will receive the proceeds of a life insurance policy if the "Primary" Beneficiary does not survive the Insured.

This means that if the primary beneficiary is no longer alive when the Insured passes away, the secondary or Contigent Beneficiary will receive the proceeds from the life insurance policy.

However, if a beneficiary is convicted of murdering the insured, the beneficiary (whether primary or contingent) cannot collect the proceeds of the life insurance policy.

The insured's estate would receive the death benefit.

I hope that helps! Take care and best of luck!

Other answer:

steve:
In life insurance, you make someone a primary beneficiary and you can also have a contingent beneficiary.

When you die, the primary receives the death benefits. But, if the primary (dies) prior to the person insured, then the contingent (2nd) gets paid instead.

A good example of this is when parents make the spouse the primary and they make their children contingent. But, spouse dies before other spouse dies, so then the children become the beneficiaries.

Casey Y:
You have a primary beneficiary, who receives the payout if something happens.

You have a contingent in the event the primary predeceases the insured.

coraann:
It means, if something happens one way or another (whichever is stated) the
policy will pay, or will not pay the principal amount to a beneficiary.
Maris:
Complement of the season i'm Maris by Name i want to say a very big thank you to a woman i can't stop thanking for the rest of my life who help me in getting a loan for a good Internet rate, my wise is for those in need of a loan to be happy just as i am now contact her now and get your loan via mail {fountainjessica08@gmail.com}
Max Hoopla:
Certain events have to happen. One might be that based on the age at issuance you have to survive for a couple of years.
Share