Basic Beneficiary Question

[cador]

We have the son and daughter as primary co-beneficiaries, and granddaughter as alternative bene. Daughter passes way, but is not taken off the bene. Upon death of the insured, how are death benefits paid? 100% to son, or 50/50 son/grandaughter?

 

[Allen Trent]

We have the son and daughter as primary co-beneficiaries, and granddaughter as alternative bene. Daughter passes way, but is not taken off the bene. Upon death of the insured, how are death benefits paid? 100% to son, or 50/50 son/grandaughter?

Depends on how you listed the primary beneficiaries. If you added the "per stirpes" clause, it will flow like the roots of a family tree "per stirpes",meaning the deceased beneficiaries share would flow to the deceased beneficiaries children. Without per stirpes, standard contract language would have it handled "per Capita", meaning the surviving primary bene would get 100%.

The granddaughter in your example would never get the money as the contingent bene only comes into play if all primary bene die or disclaim their share.

Note, if the granddaughter is the child of the daughter, she would receive some or all if the per stirpes was listed. She would get it all if she was the only child of the deceased primary bene or partial if the deceased primary had more children

 

[Allen Trent]

Here is a basic tutorial & video on the topic that covers most basic situations; Life Insurance Beneficiaries | National Online Insurance School