Q:What happens to my life insurance if the beneficiaries pass away?
A: If the primary beneficiary of a life insurance policy passes away before the insured, the contingent or secondary beneficiary comes into effect. The contingent beneficiary is the individual or entity named by the policyholder to receive the death benefit if the primary beneficiary is deceased.
If both the primary and contingent beneficiaries are deceased, the proceeds of the life insurance policy typically go to the insured person's estate. The executor or administrator of the estate will then handle the distribution of the funds according to the insured's will or the laws of inheritance in their jurisdiction.
It's essential to review and update your life insurance policy regularly to ensure that your designated beneficiaries are up to date. Life changes such as marriage, divorce, or the passing of a beneficiary may require updating your policy to reflect your current wishes. Consulting with an insurance professional or attorney can provide you with the best guidance for your specific situation.