What type of beneficiary receives money only if the primary beneficiary is deceased when the insured dies?

A contingent beneficiary is someone designated to receive the policy benefits if the primary beneficiary is deceased at the time of the insured's death. This type of beneficiary provides an additional layer of security in the distribution of benefits, ensuring that there is a designated alternate recipient in case the primary beneficiary is unable to collect due to death or other qualifying circumstances.

This arrangement allows for the orderly transfer of benefits, which is vital in estate planning and ensures that the insured's wishes are honored even if unforeseen circumstances arise. If the primary beneficiary is alive at the time of the insured's passing, the contingent beneficiary will not receive any benefits.

In contrast, a revocable beneficiary can be changed at the discretion of the policyholder without the consent of the beneficiary. A minor beneficiary may not have the legal capacity to receive benefits directly, which typically requires a custodian to manage the funds until they reach adulthood, but does not inherently address the order of payment upon the primary beneficiary's death. An irrevocable beneficiary, once named, cannot be changed or removed without that beneficiary’s consent, further solidifying their place in the payout hierarchy but without the conditional aspect that a contingent beneficiary has.