What Happens When The Beneficiary Of Life Insurance Dies? 
If the primary beneficiary dies before the insured , the benefits would roll to the contingent beneficiary if one was named on the application . If there is no other beneficiary the life proceeds would be paid to the estate which could trigger income taxes for heirs on what should have been a tax free benefit . It is imperative to keep up with such events and keep the beneficiaries up to date on your life insurance policies . 