What Happens If A Life Insurance Beneficiary Is Dead? 
If the primary beneficiary dies prior to the insured a few different things can happen . First , when the primary beneficiary dies , the next in line or contingent beneficiary would be next to pay . If a third or tertiary beneficiary was named , then they would be next in line for death benefit proceeds if both primary and contingent beneficiaries die prior to the insured . If there is no contingent beneficiaries listed after the primary and the insured dies , then the death proceeds would be left to the estate . This is not the ideal situation because it can cause the proceeds to be taxed with the estate that are normally tax free . It also ties up the death proceeds up in probate court instead of paying directly to the beneficiary tax free . 