Contingent owner is the person or entity designated to assume ownership of a life insurance or annuity contract if the current owner dies or becomes otherwise unable to continue in that role. Unlike the beneficiary, who receives death benefits, the contingent owner steps into full policyowner rights"such as changing beneficiaries, making withdrawals, or assigning the contract. Naming a contingent owner can avoid delays or uncertainty about control of the contract, especially in non-trust arrangements or where estate administration might be slow or contested.

Advisors recommend naming a contingent owner when the primary owner is an individual whose death or incapacity would create uncertainty over policy administration. Common choices include spouses, adult children, or revocable trusts. Carriers include contingent-owner designations on applications or change forms, and they record them in policy systems. When a triggering event occurs, the contingent owner must typically provide proof and complete simple paperwork to assume control. Understanding contingent owners helps advisors keep policies administratively resilient and aligned with broader estate and succession plans.