- 6,134
If there is one beneficiary and that beneficiary dies before the insured, wouldn't it revert back to the insureds estate?
If so, shouldn't the same happen here?
If so, shouldn't the same happen here?
Beneficiaries Per Stirpes
- Thread starter jacobtn
- Start date
- 30,590
That's the way I think it should be. Good point.
If there is only one beneficiary it might (especially if the bene died and have no heirs).
This is akin to the scenario of who dies first if both the insured and the bene die in an accident or something of the like. Automatically, the insured is deemed to had died first. Therefore, the money still passes through the bene's estate (or the children).
- 15,041
You really should read a policy sometime. Many policies have a clause that addresses this and says the exact opposite to avoid this very situation. If the insured and the beneficiary die at the same time, and some even allow a short period after, up to 30 days, then the beneficiary is deemed to have died first for purposes of the policy.
Very common clause in wills and life insurance policies. Not all have it, but many do.
My apologies, I did state that exactly backwards! Thank you for that correction.
- 15,041
No worries, was kind of surprised you said it.
The reason the clause exists is to protect the money from the beneficiary's creditors if deceased.
I'm surprised I said it too! Glad you caught it before it was just left there for some new agent to read.
- 30,590
Smokin' kind of early today Todd?
Smokin' kind of early today Todd?
Oh how I wish. Even if I did do that, I would never do it during work. There was a time that I would, but that was many years ago. Of course, there are those days that it sure would come in handy!
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