A policyowner names his wife as the primary beneficiary of his Universal Life policy on a revocable basis. He also names his three children as his secondary beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he dies, who will receive the policy proceeds?

In this scenario, when the policyowner names his wife as the primary beneficiary on a revocable basis, it means he retains the right to change this designation at any time. If the primary beneficiary (the wife) predeceases the policyowner, her designation as the primary beneficiary becomes void. Since the policyowner has named his three children as secondary beneficiaries, they will automatically move into the primary position when the original primary beneficiary is no longer living.

As a result, upon the policyowner's death, the proceeds of the Universal Life policy will go to the children, who are now considered the primary beneficiaries in light of their mother's passing. This reflects the intended order of beneficiaries as established in the policy, effectively allowing the children to receive the proceeds instead of passing them to the policyowner's estate or any other beneficiaries.