Who are the individuals named to receive proceeds if the original beneficiary is not alive?

The individuals designated to receive proceeds if the original beneficiary is deceased are known as contingent beneficiaries. This term specifically refers to those who will step in to receive the benefits in the event that the primary or original beneficiary cannot do so, either because they have passed away or are otherwise unable to accept the benefits.

Contingent beneficiaries play a crucial role in estate planning and insurance policies, as they ensure that the assets are distributed according to the policyholder's wishes, even if the primary beneficiary is not available. This designation helps avoid complications that can arise if no beneficiary is alive at the time the benefits are due, thus facilitating a smoother transfer of assets.

The other terminology presented may not accurately capture the definition of individuals in a similar role or may reflect different contexts within beneficiary designations. Understanding the proper terminology and roles of beneficiaries is important for anyone involved in life insurance or estate planning, to ensure that their intentions are effectively communicated and documented.