Report No. 82
5.11. Contingent beneficiary.-
At the same time, the new policy provision created a new contingency that might be provided against-the possibility that the first-named beneficiary might die before the insured and the death benefit become payable to the estate of the insured. Now it became possible for the insured to name a contingent beneficiary, who would have the right to receive the death benefit if the primary beneficiary did not survive the insured. And since the contingent beneficiary might also pre-decease the insured, most companies today permit the insured to name a second contingent beneficiary. Settlement will be made to this person if there is not surviving primary or first contingent beneficiary at the death of the insured.