What is the term for a secondary beneficiary if the primary is deceased?

The term for a secondary beneficiary, in the context where the primary beneficiary is deceased, is known as a contingent beneficiary. A contingent beneficiary is designated to receive the proceeds of a life insurance policy or other financial instruments only if the primary beneficiary is no longer able to do so, which typically happens in the event of their death before the insured.

This term is important in estate planning and insurance, as it ensures that the insurer knows who to direct the death benefit to in case the primary beneficiary cannot fulfill that role. The presence of a contingent beneficiary is a way to provide additional security and ensure that the insured's wishes regarding the distribution of their benefits are honored as closely as possible, even under unforeseen circumstances.

Other terms like subordinate, alternate, or secondary beneficiary are not standard terminology specifically used in insurance policies for this context and may cause confusion regarding their legal implications. Understanding the proper terminology is essential for ensuring that policyholders can accurately communicate their intentions and that payouts are made according to their wishes.