What does a contingent beneficiary receive if a primary beneficiary passes away?

In a life insurance policy, if the primary beneficiary passes away before the insured, the contingent beneficiary is designated to receive the death benefit. This means that the contingent beneficiary will receive the full benefits as outlined in the insurance contract. The purpose of having a contingent beneficiary is to ensure that the death benefit does not go unclaimed or revert to the estate of the insured, which could involve probate complications and delays.

The full benefit is available to the contingent beneficiary because the policyholder has designated them to receive the benefits in the event that the primary beneficiary is unable to do so. This ensures a smooth transition of benefits and provides financial support to the contingent beneficiary as intended by the policyholder.