What is a contingent beneficiary?

A contingent beneficiary is your backup choice, the person or organization who inherits if your primary beneficiary has died or can't accept the assets. Without a named contingent, the asset could end up tied up in probate or distributed by default rules you didn't choose. Naming one is a simple safeguard that keeps your plan working even if life doesn't go as expected. It's worth doing on every account and policy that allows it.