If both the insured and primary beneficiary die in the same accident with undetermined order of death, who receives the death benefit?

In situations where both the insured and the primary beneficiary die in the same accident, and the order of death cannot be determined, the death benefit is typically paid to the contingent beneficiary. This approach is rooted in the principle of law that assumes the primary beneficiary has predeceased the insured when there is no clear evidence of the order of death.

The contingent beneficiary serves as an alternative recipient of the death benefit if the primary beneficiary is unable to claim it, either due to having died before the insured or during the same incident without proof of a different sequence of events. This mechanism ensures that the benefits are distributed as intended by the insured's wishes, preserving the purpose of the insurance policy.

Understanding this concept is crucial as it emphasizes the necessity of having a clear designation of beneficiaries and the potential importance of contingent beneficiaries in estate planning.