In case the beneficiary is deceased, the insurance company will look for primary co-beneficiaries whether they are next of kin or not. In the absence of primary co-beneficiaries, secondary beneficiaries will receive the proceeds. If there are no living beneficiaries the proceeds will go to the estate of the insured.. What happens when a beneficiary of a life insurance policy is deceased. Suffice it to say that, for all sorts of reasons, the person who is insured might outlive the person who they’ve named as a beneficiary. One spouse dies before the other, or parents outlive their children. It is, of course, sad, but it inevitably happens..
When a person dies who is the insured subject of a life insurance policy, the family members who are beneficiaries have the responsibility to contact the insurance company and make a claim for the payment of death benefits. Normally, this is a fairly simple procedure, and claims are paid quickly..
When the owner of a life insurance policy dies, his or her beneficiaries are paid a death benefit by the insurance carrier. however, carriers aren’t always notified when a policyholder has died, and in many cases, the beneficiary will know about the policyholder’s death before the insurance company.. A life insurance policy has one or more designated beneficiaries if the decedent completed a beneficiary designation form for the policy before their death. If at least one of the designated beneficiaries survives the decedent, the life insurance proceeds pass directly to the beneficiary outside of probate. .
To claim life insurance benefits, the beneficiary should contact the insurance company's local agent or check the company's website. Some companies ask beneficiaries to start by sending in a form that merely reports the death; they then send the beneficiary a packet of forms and instructions explaining how to proceed.. Life insurance policies can go unclaimed because it is the family members' responsibility to notify the insurance company when the policyholder dies; the insurer will not make an effort to locate beneficiaries – the company doesn’t even know an insured has died.. While there is no time limit for claiming life insurance death benefits, life insurance companies do have time limits they must adhere to when it comes to paying out claims. It is usually very uncommon for large companies to not pay within 30 days of an insured individual’s death..