Which of the following statements concerning primary beneficiaries is correct?

• A. Primary beneficiaries have the first claim to the insurance policy proceeds upon the insured's death.
• B. Primary beneficiaries must share equally in the proceeds.
• C. Primary beneficiaries must be specific, as opposed to class, beneficiaries.
• D. Primary beneficiary designations are always revocable by the policyowner.

Answer: (A)

The main idea here is that a primary beneficiary is the first in line to receive the life insurance proceeds when the insured dies. If the primary is alive at death, they receive the payout according to how the designation is written. If there are multiple primaries, their shares are determined by the policy's instructions; they do not have to share equally unless the policy specifies that division. If none of the primaries is eligible or alive, the funds would go to contingent beneficiaries.

This is why the correct statement is that primary beneficiaries have the first claim to the policy proceeds upon the insured’s death. The other options aren’t universally true: primary beneficiaries can be more than one and need not share equally unless the policy says so; they can be described as a specific person or a class (like “my children”), so they don’t have to be only specific individuals; and beneficiary designations are not always revocable—some policies use irrevocable designations that can’t be changed without the beneficiary’s consent.