What Happens When a Beneficiary Dies Before the Policyowner?

Beneficiary designations can become complicated when a named beneficiary dies before the policyowner. The outcome may depend on the policy language, the type of beneficiary designation, and applicable law.

Some policies include primary and contingent beneficiaries. A primary beneficiary is first in line to receive the proceeds, while a contingent beneficiary may receive them if the primary beneficiary cannot. If no appropriate beneficiary remains, the policy may provide a different result under its terms.

This is one reason beneficiary information should be reviewed after a death, divorce, marriage, birth, or other major family change. Do not assume the policy will automatically be distributed in the way you expect.

Beneficiary and estate issues are legal matters. This is not legal advice. If a beneficiary has died or you are unsure how the proceeds may be handled, consult a competent attorney and review the policy with the insurance company.

Keeping beneficiary information current can help reduce confusion when a claim is eventually needed.

Book a call with us to review your primary and contingent beneficiary designations.

Request our free Primary and Contingent Beneficiary Checklist to help you prepare for a policy review.