Who gets money if beneficiary is deceased

gets money if beneficiary is deceased, the life insurance money typically goes to the contingent beneficiary. If no contingent beneficiary is named, the death benefit usually becomes part of the insured’s estate and is distributed according to the will or state intestacy laws. To avoid complications, it’s important to regularly update beneficiary designations.

gets money if beneficiary is deceased

Who gets money if beneficiary is deceased

If a life insurance beneficiary is deceased at the time of the policyholder’s death, the proceeds typically go to the contingent beneficiary, if one has been named. A contingent beneficiary is the secondary recipient designated to receive the benefits if the primary beneficiary cannot.

If no contingent beneficiary is named, the death benefit usually becomes part of the policyholder’s estate. This means the proceeds will go through the probate process, where they may be used to settle debts and taxes before being distributed to the heirs according to the policyholder’s will or, in the absence of a will, according to state intestacy laws.

These laws generally prioritize close family members such as spouses, children, and parents. To ensure the death benefit is distributed according to their wishes, it is essential for policyholders to designate both primary and contingent beneficiaries and keep these designations updated.

gets money if beneficiary is deceased

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