What term describes the beneficiary who has the first claim to policy proceeds after the insured's death?

What term describes the beneficiary who has the first claim to policy proceeds after the insured's death?

• A. Contingent beneficiary
• B. Primary beneficiary
• C. Beneficiary designation
• D. Secondary beneficiary

Answer: (B)

The primary beneficiary is the person named to receive the death benefit first when the insured dies. This position means they have the first claim to policy proceeds, ahead of all others. If the primary can’t receive the proceeds—because they predecease the insured or can’t be located—the contingent (or secondary) beneficiary becomes next in line to receive, not the primary. The term “beneficiary designation” refers to the document that names who should receive the proceeds, rather than describing a specific recipient. A secondary/contingent beneficiary is simply the backup, not the initial recipient.

The primary beneficiary is the person named to receive the death benefit first when the insured dies. This position means they have the first claim to policy proceeds, ahead of all others. If the primary can’t receive the proceeds—because they predecease the insured or can’t be located—the contingent (or secondary) beneficiary becomes next in line to receive, not the primary. The term “beneficiary designation” refers to the document that names who should receive the proceeds, rather than describing a specific recipient. A secondary/contingent beneficiary is simply the backup, not the initial recipient.