Common Beneficiary Questions
It is important to understand that each company may have slightly different requirements for beneficiaries of life insurance policies to claim the funds that might be due to them. This means that you will have to understand "how do life insurance companies confirm death". Life insurance is only subject to probate in the event that all beneficiaries are deceased. Here are some common questions about life insurance beneficiaries.
What happens if the primary beneficiary is deceased?
Some companies will require that when applying for life insurance, that there is a primary as well as a contingent beneficiary. This means that in most states, that the contingent beneficiary is entitled to the proceeds of the life insurance policy. In this instance, the life insurance company will also require that a death certificate be provided for the primary beneficiary.
Is it possible to dispute a life insurance beneficiary?
In some cases, there may be instances where people may dispute the validity of a beneficiary claiming a right to a life insurance policy. Generally, there are two cases where this may occur. They are (a) when a decedent has remarried and failed to update their beneficiaries and (b) when the decedent made a change to their beneficiary while ill. Generally, these cases are not followed through on due to the expenses that may be involved.
What happens if there is no beneficiary?
In the event that the life insurance policy had only one benecificary and that beneficiary is deceased, the life insurance policy would become propery of the estate of the decedent and the policy would be included in the estate that is going to be probated.
Can a minor be a beneficiary?
Minors can be added to a life insurance policy as a beneficiary. In the case that they are still a minor when the policy owner dies, the funds that they are entitled to may be claimed by their parents or legal guardians with the proper documentation. It is critical to speak with the life insurance company to make sure that you understand what documentation is required.