Under what condition can a contingent beneficiary collect a death benefit?

A contingent beneficiary is designated to receive the death benefit in the event that the primary beneficiary is unable to do so. This typically occurs if the primary beneficiary passes away before the insured. In such a case, the contingent beneficiary takes precedence to receive the death benefit, ensuring that the policy funds are distributed according to the wishes outlined in the policy.

The identification of the contingent beneficiary is crucial in life insurance, as it serves to provide a clear plan for the distribution of funds should the primary beneficiary not be available. If the primary beneficiary predeceases the insured, the contingent beneficiary steps in to claim the death benefit as specified in the policy agreement.