Who receives the policy proceeds if both the primary and the contingent beneficiaries pass away before the insured?

In situations where both the primary and contingent beneficiaries have passed away before the insured individual, the proceeds typically go to the tertiary beneficiary. The tertiary beneficiary is designated in the policy as the next in line to receive the death benefit after the primary and contingent beneficiaries. This hierarchy establishes a clear order of who receives the benefit, ensuring that the proceeds are distributed according to the insured’s wishes.

The other options do not apply in this scenario. The insured individual cannot receive the policy proceeds since they are the individual whose life is insured and cannot claim the benefit for themselves upon their death. The insurer's estate would only receive proceeds in the absence of any designated beneficiaries, which is not the case here since a tertiary beneficiary exists. Lastly, naming relatives as beneficiaries is not sufficient unless they are formally entered into the policy; hence this option does not reflect the proper distribution of policy proceeds.