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The specific terms of the insurance contract need to be followed. If it addresses what happens if the beneficiary is deceased, (most due as part of the template...gotta read it). It normally says it reverts to the owner (which is frequently but certainly not always the same as the insured), which in this case means his estate. His estate is divided according to his will, or the laws of decent of the State he died in.

If it isn't addressed at all, that doesn't mean someone else just steps in - it would actually go to the heirs of the now deceased beneficiary.

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Q: The beneficiary died before the policy holder who is now deseased No contingent beneficiary found who is next in line children or estate Estate was given to step children and not biological children A?
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