A Contingent Beneficiary is specified by an insurance contract holder or retirement account owner as the person or entity receiving proceeds if the primary beneficiary is deceased, unable to be located, or refuses the inheritance at the time the proceeds are to be paid. A contingent beneficiary can provide peace of mind in knowing that someone will receive benefits from a life insurance policy or retirement account if something happens to the primary beneficiary.There are many reasons why you might want to name a contingent beneficiary. Perhaps you have several children and want one of them to inherit your life insurance policy proceeds if all of your other children die before you do. Or maybe you want your best friend to receive your retirement account assets if something happens to you and your spouse before either of you can claim them. Naming a contingent beneficiary is a good way ensure that someone important will benefit from your life insurance policy or retirement savings plan regardless of what happens to the primary beneficiaries named in those documents.