Final answer:
If the sole beneficiary of a life insurance policy dies before the insured, and the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to the contingent beneficiary. If there is no contingent beneficiary named, the proceeds may go to the insured's estate or dependents.
Step-by-step explanation:
If the sole beneficiary of a life insurance policy dies before the insured, and the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to the contingent beneficiary. A contingent beneficiary is a secondary beneficiary named in the policy, who will receive the proceeds if the primary beneficiary is unable to receive them.
If there is no contingent beneficiary named, the proceeds may go to the insured's estate, or the insured's dependents if they are still alive. However, it is important to note that the specific distribution of the proceeds will depend on the laws and regulations of the state where the insured resided.
In order to ensure the proper distribution of the life insurance proceeds, it is important for policyowners to regularly review and update their beneficiary designations as needed.