For instance, if your niece serves as the sole primary beneficiary for your $500,000 policy and she predeceases you, your contingent beneficiaries would therefore become the claimants of your policy’s proceeds. Let’s say your contingent beneficiaries are two close friends. If you assigned an even split between them in your insurance policy, they’d both receive a lump sum of $250,000. The outcome would also be the same if your niece either refused to accept the death benefit or could not be located. However, if your contingent beneficiaries also aren’t able to accept your death benefit, you can select a tertiary beneficiary.
Source: Google | Insurance News