Under what circumstance can a contingent beneficiary collect the death benefit of a life insurance policy?

A contingent beneficiary is designated to receive the death benefit of a life insurance policy if the primary beneficiary is unable to do so. The situation where the primary beneficiary predeceases the insured is a specific and definitive condition under which the contingent beneficiary takes precedence. When the primary beneficiary has died before the policyholder, that leaves the contingent beneficiary as the next in line to receive the death benefit, fulfilling the intent of the policyholder to ensure that their death benefit is distributed even if the primary beneficiary cannot receive it.

In this context, being "unavailable" does not clarify the circumstances sufficiently, as it can mean many things, including being unreachable, which might not apply in all cases. The possibility that the insured outlives the primary beneficiary is not inherently a disqualifying condition since it relates to the timing rather than the status of the beneficiaries. Lastly, the cancellation of the policy precludes any benefits from being paid out at all, which does not support the idea of a contingent beneficiary receiving anything under such circumstances.