If both primary and contingent beneficiaries are living when the insured dies, who receives the proceeds?

When both the primary and contingent beneficiaries are living at the time of the insured's death, the proceeds are directed to the primary beneficiary only. This hierarchy is established in most insurance policies, where primary beneficiaries are given priority to receive the death benefit.

In this scenario, the primary beneficiary is the first entitled individual to claim the benefits from the policy, which is why they will receive the full proceeds. The contingent beneficiary serves as a backup in cases where the primary beneficiary has predeceased the insured or is otherwise ineligible to receive the benefit. Hence, if the primary beneficiary is living when the insured dies, they will receive the policy proceeds exclusively.