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Question: 1 / 400

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

After the death of the policyholder

Only if they are related to the insured

If the insured dies of natural causes

If the primary beneficiary dies before the insured

As an Accidental Death and Dismemberment policy is designed to provide financial protection for accidental death or severe injuries, it is assumed that the primary beneficiary may outlive the policyholder. However, in the event that the primary beneficiary does pass away before the insured, the contingent beneficiary would then receive the policy proceeds. This is because the primary beneficiary is the first in line to receive the proceeds, but if they are unable to, the contingent beneficiary steps in to receive them. The other options are incorrect as they do not accurately describe the purpose and structure of an AD&D policy.

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