Which type of beneficiary is entitled to proceeds if both primary and secondary beneficiaries are not alive when the insured dies?

In life insurance terminology, a tertiary beneficiary comes into play when both the primary and secondary beneficiaries are deceased at the time of the insured's death. This means that if the primary beneficiary—who is first in line to receive the policy proceeds—and the secondary beneficiary—who would receive the proceeds if the primary is unavailable—are not alive, the proceeds would go to the tertiary beneficiary.

This is an important aspect of estate planning within life insurance policies, as it ensures that there is a hierarchy in place to determine who will receive the benefits, providing a clear direction for the distribution of assets according to the policyholder's wishes. The other options, such as primary and secondary beneficiaries, would not be applicable if they are both deceased, leaving the tertiary beneficiary as the rightful receiver of the policy’s proceeds. As a term, "none of the above" would not align with the scenario given, since the tertiary beneficiary would indeed be entitled to the proceeds.