buying the beneficiary position on a life insurance policy of someone who is dying This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you How Is the Life Insurance Death Benefit Paid if a Beneficiary Is Deceased? | Quotacy Q&A Fridays. Following along are instructions in the video below:
To quotacys q. A friday where we answer your life insurance questions quotacy is is an online life insurance agency. Where you can get life insurance on your termsm jeanna and im natasha todays question comes from a blog reader his question is i would like to leave my life insurance money to my wife and a small portion to my father and siblings.
If something happens to me and my wife at the same time how does the money get divided up before we answer this question lets explain some terms our viewers should know there are three players involved in a life insurance policy. Theres the owner of the policy. This person pays for the policy and has control over what happens to it then there is the insured.
This is the person whose life is covered by the insurance.
If this person dies. The death benefit is paid the policyowner and the insured are often the same person. But not always then there are beneficiaries.
These are the people or entities who are paid when the insured dies also not only can there be multiple beneficiaries on one policy. But there are primary and contingent beneficiaries primary beneficiaries are the people that receive the death benefit contingent beneficiaries receive the death benefit. Only if the primary are unable to so lets go back to our readers question.
Lets call him.
Tim tim has a life insurance policy and wants his wife father and siblings to all receive a portion of the death benefit when he dies this means he needs to name all of these individuals as primary beneficiaries and designate what percentages each individuals to receive he can name any percentage he. Likes but. It all needs to add up to 100 if tim and his wife die at the same time like in a car accident then her death benefit portion would be split equally between tims father and siblings right.
So. The remaining primary beneficiaries would receive an extra 1666666 . But this is only if tim did not specify further designation language.
If tim would prefer his wifes portion to go to their children instead being split evenly between his father and siblings tim would need to specify this on his life insurance application. He would need to say that he wants the death benefit designation to be divided per stirpes. So with per stirpes designation.
Tims wifes share would get split equally between tim and his wifes children exactly. If tim doesnt specify anything though the default designation is to split the share equally between their surviving primary beneficiaries and if for some reason all of the primary beneficiaries die before or at the same time. As tim.
Then the contingent beneficiaries come into play.
And its important to name contingent beneficiaries or else the death benefit would go to tims estate and then it would sit in probate land until its eventually distributed via a will or your states probate laws. And you arent actually required to name an individual as a beneficiary you could name a charity. So if tim didnt have anyone else he wanted to pass his benefit on to other than his wife father or siblings.
He could name a charity as a contingent beneficiary and remember that you can change your beneficiaries at any time. Thanks for watching. If you have any questions about life insurance make sure to leave us a comment and if you have any questions regarding.
Todays topic check out the blog link posted below otherwise tune in next week. When we talk about how having a criminal record affects buying life insurance bye. .
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