GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Convertible
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Contingent Liability
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Contractual Liability
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Contingent Beneficiary
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Detailed explanation-1: -Definition: In life insurance, the beneficiary is the person or entity entitled to receive the claim amount and other benefits upon the death of the benefactor or on the maturity of the policy.
Detailed explanation-2: -If your primary beneficiaries are deceased and you have no contingent beneficiaries, your death benefit will be paid to your estate instead of to people or organizations you’ve selected. Your payout will then be subject to estate taxes and go through probate court for a judge to determine the recipient.
Detailed explanation-3: -Description: For instance, the owner of the policy chooses his/her spouse as the primary beneficiary. However, the spouse dies at the same time as that of the insured. Here the children of the insured will become the contingent beneficiary.