If you pass, the death benefit for your life insurance will got to the Primary Beneficiary or beneficiaries that you set up when you purchased the policy. If you made a change to the beneficiaries at some point after purchase, the proceed will go to the updated beneficiary, not the original one(s).
If all your Primary Beneficiaries are deceased, the policy's death benefit will go to the person or persons designated as Contingent Beneficiary.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
If you have named a beneficiary the proceeds from your life insurance will go to them. If you have named a contingent beneficiary, and the primary has also passed, the life insurance goes to that person or persons. IF both the primary beneficiary and the secondary (or contingent) beneficiary have passed. The proceeds would become part of your estate and subject to probate at that point.
Insurance Advisor, Lordship Insurance Services, California
Real simple; either the persons or entities you designate before you death or the estate created by your death in which your insurance proceeds will be placed and a judge will decide.
Its better if you decide how you want your assets divided while you can still chose instead of leaving it to others to decide.
When the designated insured of a life insurance policy dies, the proceeds, generally tax free, go to the policy beneficiaries providing there are no policy collateral assignments in place at the time of the of the insured. There may be multiple beneficiaries on a policy and may also have differing percentages of the death claim.
The person or entity (charity or business) that would receive your death benefit if you were to die is called your beneficiary. Your life insurance would go to your primary beneficiary first. If you were to die along with your primary beneficiary, the death benefit would go to your contingent beneficiary. Beneficiary designation is very important. Experienced agents will perform regular beneficiary audits to make sure that in the event a client dies, their death benefit goes where the client whished it to go.
If you are the insured person on your life insurance policy, the death benefit will be paid to your beneficiary or beneficiaries that you had designated on your policy.
If you are the owner of the life insurance policy, with the insured person being someone else, the policy would go to whoever you had set up as the contingent owner, if you would pass away. If there is no contingent owner, the insured person might become the owner.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The idea is that someone that you love and name in the policy will get the proceeds of your life policy. Life insurance is a legal contract. The company is obliged to pay your beneficiary the proceeds. If your beneficiary is no longer alive, then your contingent beneficiary will receive the proceeds. If there isn’t a designated beneficiary that survives you, the probate court will decide.
Living Debt Free & Truly Wealthy, The found money specialist, United States
Your beneficiary gets the death benefit. Make sure you choose a beneficiary who can and will execute any plan you may have for the funds. Maybe if you have children you want some of the money to go to their college cost or maybe payoff your home.
I think you should go a step further and do an estate planning plan. Or maybe a trust of some sort to dictate how the money is spent
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
When you purchase your life insurance policy, you have an opportunity to name a Primary Beneficiary. This is the person who, should you die while th policy is in force, will receive the proceeds of that policy. You also have an opportunity to name a Contingent Beneficiary, to whom the proceeds would be distributed if for some reason, your Primary Beneficiary has also died or cannot for some reason receive the money.
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If all your Primary Beneficiaries are deceased, the policy's death benefit will go to the person or persons designated as Contingent Beneficiary.
Its better if you decide how you want your assets divided while you can still chose instead of leaving it to others to decide.
If you are the owner of the life insurance policy, with the insured person being someone else, the policy would go to whoever you had set up as the contingent owner, if you would pass away. If there is no contingent owner, the insured person might become the owner.
I think you should go a step further and do an estate planning plan. Or maybe a trust of some sort to dictate how the money is spent