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If a beneficiary of a life insurance policy dies before the insured what happens to the money once the insured dies?
Wiki User
∙ 15y ago
Goes to the beneficiaries heir's or estate.
Wiki User
∙ 15y ago
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What happens to insurance when beneficiary dies before insured person?
generally nothing. Insured person can name another beneficiary.
What happens if the sole beneficiary to a life insurance policy dies after the insured dies but before the claim is processed?
The proceeds belong to the estate of the beneficiary.
What happens if the beneficiary of a life insurance policy is deceased?
Generally, if the beneficiary is deceased, the proceeds go to the contingent beneficiary, or if none, to the estate of the insured. An attorney must be consulted to direct you on how to handle this in your state. It depends on whether the beneficiary predeceased the insured. If the beneficiary died before the insured then the proceeds go the the contingent beneficiary. If there is not a contingent, check the contract, it probably is paid to the Owner of the Estate of the Insured. If the Beneficiary died after the Insured, the proceeds go to the Beneficiary's Estate. It is important to have a contingent beneficiary specified in your life insurance policy. This way, if the beneficiary passes away, the contingent beneficiary will benefit. If there is no contingent beneficiary, and the beneficiary has deceased, the proceeds of the life insurance policy, go to the estate and is distributed according to the Will.
Is life insurance considered as the estate of the deceased?
only if there is no beneficiary named on the policy, or if the beneficiary(ies) deceased before the insured.
Does a secondary beneficiary only receive funds from a life insurance policy if the primary beneficiary has already passed?
Yes. A secondary beneficiary only becomes beneficiary if the primary beneficiary dies before the insured. Say the insured and primary beneficiary are involved in a fatal auto accident but the insured dies an hour before the primary beneficiary. The insurance proceeds would not go to the secondary beneficiary but to the estate of the primary beneficiary. If the primary beneficiary dies an hour before the insured then the secondary beneficiary receives the proceeds. If an insured wants both to receive monies they can name more than one person as primary beneficiary and in what percentage for each person. They could also leave it to their estate and handle distribution by a will.
If beneficary dies before the insured does surviving spouse have rights?
If the beneficiary of a life insurance policy predeceases the insured, the insured should make arrangements to name a new beneficiary. If they do not, the policy proceeds will become part of their estate if they die without naming a new beneficiary. You should consult with the insurance company.
Who receives the benefits or money from a life insurance policy upon the death of the insured?
The beneficiary designated on the policy application is the recipient. Usually, a secondary ("contingent") beneficiary is also named in the event that the primary beneficiary dies before the insured. The estate of the deceased can also be the beneficiary if it is named as such or if there are no named beneficiaries or if all of them die before the insured. In that event, the insurance proceeds become a part of the estate and are distributed according to the insured's Last Will and Testament. If the insured dies without a Will, the estate, including the insurance proceeds, pass according to state law according to the laws of intestate succession.
Can a spouse change there deceased spouses beneficiary name on a life insurance policy?
The owner of the policy can change the beneficiary of the policy. If the original beneficiary has died before the insured, the owner of the policy can designate a new beneficiary at any time.
Can a spouse change their deceased spouses designated beneficiary on a life insurance policy?
No. The contingency that triggers payment of a life insurance is the death of the named insured. That person could have changed the beneficiary designation prior to his/her death. Even if the policy had given the power to change the beneficiary to another person, the change would have had to be exercised before the named insured dies.
Can life insurance be paid if the beneficiary was changed before the insurer was determined incapacitated?
Life insurance should be paid to someone if the policy was paid at the time of the insured's death. It should probably be paid to the beneficiary it was changed to before the insured was determined incapacitated. However, that might be fought over in court. In a mess like it sounds it will be, there is no telling what might happen.
What does deductible and coinsurance mean?
On a health insurance policy, a "deductible" is a specified amount which the insured/beneficiary must pay out of their own pocket, before their insurance will pay any covered medical services. After the deductible amount is met, a "coinsurance" is a percentage amount which the insured/beneficiary is responsible for. For example, if an insurance policy is an "80/20 plan", this means that the insurance company pays 80% of medical services, and the patient (insured) is responsible to pay the remaining 20% (coinsurance).
When proceeds of a life insurance policy are paid into the estate of the insured?
I have written many policies where the beneficiary is listed as the "Estate of Insured". This is a common method of insurance planning but the client needs to have a will in order to direct where the funds are to go. Also "Trusts" are often funded with life insurance proceeds as methods of estate planning. An insurer may also pay proceeds to the estate of an insured if the named beneficiary dies before the insured and the insured does not name a secondary ("contingent") beneficiary. One of the big problems with proceeds being paid to the insured's estate is that, depending upon the amount of the insurance proceeds when added to other estate assets, is that the total may trigger an estate tax liability when one would not otherwise exist.
