What Happens If A Life Insurance Beneficiary Is Dead?
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63333 POINTSview profilePeggy MaceMost of the U.S.If a life insurance beneficiary is dead, and the policy owner/insured person has already passed away, the proceeds from the policy would go to the estate of the insured. There, they would be split up according to the dictates of the will, or if no will exists, distributed to family members in percentages determined by state law.Answered on July 16, 2013flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNIf the primary beneficiary dies prior to the insured a few different things can happen. First, when the primary beneficiary dies, the next in line or contingent beneficiary would be next to pay. If a third or tertiary beneficiary was named, then they would be next in line for death benefit proceeds if both primary and contingent beneficiaries die prior to the insured. If there is no contingent beneficiaries listed after the primary and the insured dies, then the death proceeds would be left to the estate. This is not the ideal situation because it can cause the proceeds to be taxed with the estate that are normally tax free. It also ties up the death proceeds up in probate court instead of paying directly to the beneficiary tax free.Answered on May 7, 2015flag this answer
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