What will the contingent beneficiary receive if the primary beneficiary predeceases the insured?

When a primary beneficiary predeceases the insured, the contingent beneficiary is designated to receive the policy proceeds. This is a common practice in insurance contracts where the insured specifies a primary beneficiary who is entitled to the benefits upon the insured's death. If the primary beneficiary is unable to collect the benefits due to their prior death, the policy terms typically dictate that the contingent beneficiary takes precedence.

The contingent beneficiary serves as a backup to ensure that the proceeds are distributed according to the insured’s wishes, maintaining the intent of the policyholder. Therefore, the contingent beneficiary is entitled to receive the full amount of the policy proceeds if the primary beneficiary is no longer eligible to claim them, ensuring a seamless transition of benefits.

Other options do not reflect standard insurance practices. For instance, claiming "nothing" or "only funeral expenses" fails to account for the explicit role and rights of the contingent beneficiary. Similarly, receiving "a portion of the cash value" would be inaccurate because the policy proceeds are generally paid out in full to the designated beneficiary, not as a partial amount or based on cash value considerations after the insured's death.