What's the difference between a primary and contingent beneficiary?

A primary beneficiary is first in line to receive the death benefit; a contingent (or secondary) beneficiary receives it only if every primary beneficiary has died before you or cannot be located. Naming a contingent beneficiary is essential insurance against the unexpected: if your sole primary predeceases you and there is no backup, the proceeds usually fall into your estate and go through probate, which is slow, public, and may route the money differently than you intended. You can name multiple people at each level and split the benefit by percentage. Review both tiers after major life events, deaths, births, marriages, and divorces, so the chain of beneficiaries always reflects your current wishes. Even a simple backup name prevents your policy from defaulting to your estate.