Who has the first claim to the policy proceeds after the insured's death?

The primary beneficiary holds the first claim to the policy proceeds after the insured's death. This individual or entity is specifically designated in the life insurance policy to receive the benefits, and their entitlement typically takes precedence over anyone else.

The primary beneficiary can be a person, a trust, or even an organization, and their right to the proceeds is established as soon as the policyholder passes away. It is important to note that the insured can choose to change the primary beneficiary at any point, indicating that this designation plays a crucial role in the policy and reflects the intent of the insured.

In contrast, the contingent beneficiary, often referred to as the secondary beneficiary, only receives benefits if the primary beneficiary is unable to do so—such as in cases where the primary beneficiary has predeceased the insured. The insurer, while responsible for paying the death benefits, does not have any claim to the proceeds; rather, they are obligated to fulfill the terms of the policy by paying the designated beneficiaries.