Answer and Explanation:
A life insurance policy assures a lumpsum amount to the beneficiaries of the deceased policy holder against premiums paid during the holder's life.
There are a variety of insurance policies available for different amounts that one can subscribe to. Contingent beneficiary can be termed as second nominee to the policy holder's policy. In case the main or primary beneficiary is dead or declared lunatic by law, the policy proceeds can be claimed by the contingent beneficiary. The name of the contingent beneficiary is put in the policy agreement by the holder.