Which term describes the alternate beneficiaries following the primary beneficiary?

The term that describes the alternate beneficiaries who would receive benefits if the primary beneficiary is unable to do so is "contingent beneficiaries." This designation is important in life insurance and other financial planning contexts, as it allows for a clear line of succession in the distribution of benefits. If the primary beneficiary passes away or disclaims the benefit, the contingent beneficiary can step in and receive the proceeds.

In financial planning, the use of contingent beneficiaries ensures that the intended financial support continues without interruption, providing security to loved ones. This concept is critical for individuals managing their estate planning, as it can impact financial stability for heirs and dependents.

The other options do not accurately describe this relationship. For example, secondary beneficiaries typically refer to a different or less formal category that may not be recognized in all contexts, and tertiary beneficiaries simply extend the concept further without being widely used in formal agreements. Primary beneficiaries, on the other hand, are the first in line to receive benefits and do not refer to alternative beneficiaries. Thus, contingent beneficiaries is the correct and most precise term for those who follow the primary beneficiary in the order of entitlement.