Question

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

A If the insured died from accidental means
B If the primary beneficiary predeceases the insured
C The primary and contingent beneficiaries share death benefits equally
D With the primary beneficiary's written consent

Answer 1

The contingent beneficiary, the daughter, can receive the death benefit of a life insurance policy if the primary beneficiary, the insured's wife, provides written consent to renounce their claim to the benefit.

Step-by-step explanation:

Under the given circumstances, the daughter can collect the death benefit with the written consent of the primary beneficiary, which in this case is the insured's wife. The contingent beneficiary, the daughter, can receive the death benefit if the primary beneficiary renounces their claim to the benefit in writing.

For example, if the insured's wife no longer requires the death benefit or wishes to redirect it to their daughter, she can provide written consent to allow the daughter to collect the benefit. This consent ensures that the daughter is entitled to receive the death benefit in the event of the insured's death.

It's important to note that the primary beneficiary's written consent is crucial in determining the contingent beneficiary's eligibility to collect the death benefit. Without this consent, the daughter may not be able to receive the benefit.