What term is used to describe a beneficiary that is next in line in case the primary beneficiary cannot collect?

The term that describes a beneficiary who will receive the benefits if the primary beneficiary is unable to do so is "contingent beneficiary." This terminology indicates that there is a secondary layer of beneficiaries who can claim the benefits under specified circumstances, such as the death or incapacity of the primary beneficiary.

The role of a contingent beneficiary is crucial in estate planning and insurance policies, as it provides a fallback option, ensuring that the intended benefits are still distributed according to the policyholder's wishes, even when the primary beneficiary cannot be identified to collect the benefit.

In contrast, the other terms serve different functions within the context of beneficiary designations. For instance, a secondary beneficiary may imply a similar role, but it is not the standard term used specifically for this situation. The term "revocable beneficiary" refers to a beneficiary designation that can be changed by the policyholder without the consent of that beneficiary, while a primary beneficiary is the first in line to receive benefits. Understanding these distinctions is essential for effective management of beneficiary designations and ensuring legal intent is fulfilled in financial and estate planning.