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Are both parents entitled to the payout of life insurance if only one is named beneficiary?
Wiki User
∙ 11y ago
I assume that you are referring to the unfortunate circumstance of the dealth of a child.
An insurance policy, including a life policy, is a contract between the insured and the insurer. The insurer promises to pay a sum of money to or on behalf of the insured or his/her designee (the beneficiary) upon a determinable event (sometimes called a "contingency"). With a life policy, that event is the death of the named insured for a reason that is not excluded from coverage.
The insurance policy will designate a beneficiary to whom the proceeds are payable. Therefore, absent other facts that you have not stated, the insurer will pay proceeds only to the named beneficiary.
Wiki User
∙ 11y ago
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What does a beneficiary do?
Beneficiary = benefits from Benefits from the execution of a will / payout from an insurance policy etc.
How much tax is paid by a beneficiary of a life insurance?
A life insurance payout is not taxed.
Who sees your life insurance payout?
When a person gets a life insurance policy, they choose a beneficiary who will receive the moneys that are assured. The beneficiary only sees that money, though, if you die pursuant to the terms and conditions of the agreement (i.e. suicide typically does not lead to payout).
Can a life insurance beneficiary defer the proceeds to the secondary beneficiary?
Any answer to this question would have two conditions the first being the jurisdiction under which the policy operated. The second condition would be the form in which the insurance payout was proposed it could be either paid direct to the beneficiary or to the estate of the deceased. The important point being why would you want to go about the insurance payout in this manner?
I am the second wife my husbands original life insurance policy names his first wife as beneficiary which was never changed can i protest the payout?
You can protest but the insurance company will pay the proceeds to the named beneficiary.
Is a claim payout from a life insurance coverage taxed as a regular income?
If you are the beneficiary of a life insurance payout, the income is not taxable. If you withdraw from a policy that you have on yourself, then yes, it is taxable as regular income. http://taxresolutionaries.blogspot.com
What is the Difference of life and property insurance?
Property insurance - If your property is damaged the insurance will pay for this to be repaired. Life insurance - If you die then your estate (or the named beneficiary) gets a payout to the value of the insurance.
Can I have the payout on my recently deceased husbands life insurance policy go directly to our adult children who are the secondary beneficiaries instead of to me who is the primary beneficiary?
Yes, you can decline the benefit. Speak to the insurance company about how.
Can your beneficiary collect benefits from your insurance policy if you commit suicide?
Your beneficiary can collect benefits from your insurance policy if you commit suicide if, 1. Your policy provisions for payout in the event of suicide. 2. Your waiting period has been satisfied if stipulated by your insurance carrier and policy. Read your policy carefully and contact your policy carrier for assistance and clarity as it relates to your policy.
If there is no one named as beneficiary in a life policy will it go to next of kin?
No, it will go as part of the estate of the deceased (as set out in the will). If there is no will then the estate (including the life policy payout) will be handled by the state and distributed as required by your local state/country laws.Thus if the deceased had debts on death and the insurance beneficiary was NOT identified in the policy, the payout will go towards settling the debts first (after the funeral expenses).
What happens if the beneficiary of a life insurance policy has passed away leaving no will?
My uncle was beneficiary on his mother's policy and has since passed away leaving no named beneficiary, so do the proceeds get distributed pursuant to the will? Yes Otherwise, check the rules for your state on "intestate" sucession. This situation is why it's a good idea to name a secondary beneficiary. If the primary passes away, the next in line gets the payout.
What does a beneficiary do with a life insurance check?
In most cases, the beneficiary has no specific responsibility to do something with a life insurance payout. However, you should be careful to retain a portion of it to cover taxes that might result because of the income. Additionally, if the recipient of the proceeds gets it on behalf of another person (for example, a parent on behalf of a child), the recipient has a fiduciary duty to hold/use the funds in trust and for the best interests of the intended beneficiary.
