Contingent Beneficiary

The person or persons designated to receive the benefits of a plan or policy if the primary beneficiary dies while the insured is living.

Contingent beneficiary only comes into force if the person designated to receive the death benefit of a life insurance policy dies before the life insured. An example would be if the husband and wife are killed in a car accident there should be a trustee contingent beneficiary named to protect the surviving minor children.

This is an area that deserves careful consideration. Talk to your lawyer, accountant or other financial adviser when setting up your contingent beneficiary.