What is a “beneficiary”, and how does it differ from a “contingent beneficiary”?
A benficiary is a person who’s going to receive the money first if the insured passes away. So let’s say the woman has a life insurance policy on her life and the love of her life is her husband and she names him as the beneficiary, usually called the primary beneficiary. He gets all the money if anything happens to her. Now if he and his wife, in this scenario, both die, let’s say in a common accident, and the children happen to survive, they will be the contingent beneficiary. They collect if the primary beneficiary is not around to collect.
