Primerica Life Producer Practice Test

Under what circumstance can a contingent beneficiary collect the death benefit?

1. If the primary beneficiary requests it

2. If the insured dies after the primary beneficiary

3. If the primary beneficiary predeceases the insured

4. If the primary beneficiary is unable to claim

The correct answer is: If the primary beneficiary predeceases the insured

A contingent beneficiary is designated to receive the death benefit in the event that the primary beneficiary is unable to do so. This situation typically arises if the primary beneficiary predeceases the insured, meaning they pass away before the insured individual. In such cases, the contingent beneficiary becomes next in line to receive the death benefit. The designation of a contingent beneficiary serves as a safeguard to ensure that the death benefit proceeds are distributed according to the wishes of the insured, even if the primary beneficiary is not available to claim the benefits at the time of the insured's death. This highlights the importance of periodically reviewing beneficiary designations to reflect any changes in circumstances. In the other scenarios, the contingent beneficiary would not have the right to collect the death benefit. For instance, if the primary beneficiary requests it, they would typically have the entitlement as the first choice. If the primary beneficiary dies after the insured, that would not provide a basis for the contingent beneficiary to claim, and if the primary beneficiary is simply unable to claim without having predeceased the insured, the benefit would usually still go to that primary beneficiary or their estate.