Life insurance death benefit proceeds go to the beneficiary of the policy. Those proceeds, for most scenarios, go tax free, i.e. some are taxable. When the insured dies, the life insurance company will perform a verification process of the claim and its beneficiary rights. This can take from 30-60 days, but perhaps longer, if the claim comes within two years of the issuance of the policy.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Who gets your life insurance when you die? Who do you want to get it? Did you name a beneficiary? If you did, that would be who gets your life insurance proceeds. If you failed to name a beneficiary, the proceeds would be moved into your estate and subject to probate.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
When you purchase your Life Insurance policy, you have the opportunity to name your Beneficiary. This is the person or entity who will receive the proceeds of your policy when you die. You also have the chance to name a contingent Beneficiary as well. This person or entity would receive the proceeds in the event that your Primary Beneficiary for some reason could not. If you fail to name a beneficiary, the proceeds would be paid to your estate and therefore subject to probate, taxes and creditor claims.
If you are the insured person for a life insurance policy, and you pass away, the death benefit would go to the beneficiary or beneficiaries named in your policy.
If you own life insurance on another person, and you die while the insured person is still alive, your life insurance policy would then be owned by the contingent owner. If you do not have a contingent owner, it would go to your estate.
.JPG){kind=avatar}
If you own life insurance on another person, and you die while the insured person is still alive, your life insurance policy would then be owned by the contingent owner. If you do not have a contingent owner, it would go to your estate.