Which type of beneficiary is entitled to proceeds if no primary beneficiary is living when the insured dies?

The term that describes the beneficiary entitled to receive the proceeds if no primary beneficiary is living at the time of the insured's death is a secondary beneficiary. This type of beneficiary is designated to receive benefits in the event that the primary beneficiary cannot collect due to their predeceased status.

In insurance terms, having a secondary beneficiary ensures that there’s a backup plan for the distribution of the policy proceeds. This arrangement helps avoid potential complications during the claims process, as it allows for a clearly defined order of precedence for benefit payments.

While some might confuse the terminology, a secondary beneficiary is specifically outlined to take precedence after the primary beneficiary's rights. Other types of beneficiaries, such as tertiary or contingent, might serve similar roles, but the secondary beneficiary is explicitly the fallback when the primary is not available.