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Who receives a life insurance policy if the beneficiary has passed away?

Who receives a life insurance policy if the beneficiary has passed away?

Q: Which party has rights in a life insurance policy only after the death of the insured?

The beneficiary of a life insurance policy has rights to the policy proceeds only after the death of the insured. Until then, the beneficiary does not have any claim to the funds. If the insured dies, the beneficiary can file a claim with the insurance company to receive the death benefit.

Full question:

A women passed away in May and left a life insurance policy to her mother and another to her husband and 3 children. Her mother passed away 3 years ago, so who does the insurance policy that was left to her mother go to? Her husband and 3 children or her mothers husband (they were separated for almost 15 years)?

Category: Insurance
Subcategory: Life Insurance
Date: 04/07/2025
State: Florida

Answer:

If the beneficiary of a life insurance policy dies before the insured and there is no alternate beneficiary, the policy proceeds go to the estate of the deceased beneficiary. An exception exists if the will specifies who should receive the proceeds, but they would still be paid to the estate first.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens to a life insurance policy when the policyholder dies?

When the policyholder dies, the life insurance policy pays out a death benefit to the designated beneficiary or beneficiaries. If the primary beneficiary has passed away and no alternate beneficiary is named, the proceeds typically go to the deceased beneficiary's estate. This means the funds may be subject to probate and distributed according to the deceased beneficiary's will or state law if there is no will.

What is the 3 year lookback rule for life insurance?

The 3-year lookback rule generally refers to the period during which life insurance policies may be scrutinized for any misrepresentations made by the insured. Insurers can investigate claims made within three years of the policy's issuance to determine if the insured provided accurate information. If fraud is discovered, the insurer may deny the claim or void the policy.

Which party has rights in a life insurance policy only after the death of the insured?

What happens if the insured and primary beneficiary are both killed in the same accident?

If the insured and the primary beneficiary die in the same accident, the insurance policy may treat the beneficiary as having predeceased the insured. In such cases, the policy proceeds typically go to the contingent beneficiaries, if designated. If no contingent beneficiaries exist, the proceeds may go to the insured's estate and be distributed according to the will or state law.