Question

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?A) Irrevocable
B) Revocable
C) Primary
D) Contingent

Answer 1

Answer:

D) Contingent

Explanation:

A primary beneficiary is the one who receives the insurance and is basically the owner of the insurance. A contingent beneficiary is the one who receives the ownership of the insurance when the primary owner has passed away.

So in the above case, the woman can stay the primary owner where the husband would be the contingent beneficiary who will receive the ownership of the insurance after his wife has passed away.