Co-Founder, Coastal Financial Partners Group, California
The beneficiary you named in the policy will be paid the death benefit. For most policies inforce for more than two years, routine death claims can take as little as a week from the time the life insurer receives a copy of the death certificate. Some insurance companies take longer. Policies less than two years old are within the contestability period and are investigated more thoroughly which takes a little longer.
In most cases, the death benefit is paid to your beneficiary and the policy is terminated.
With some special forms of life insurance the results are different.
If you have a joint life policy where two individuals are covered, the policy proceeds are paid and the surviving individual receives a new policy at current rates with them listed as the insured. If the policy is a last to die policy, proceeds are not paid until the surviving insured dies.
If your policy is in force at the time of your death, the face amount of the policy will be paid to your beneficiary. If your primary beneficiary is not alive, it will go to your contingent beneficiary. If none of your beneficiaries are alive, the money will go to your estate.
After you pass away, the policy on your life is no longer in effect.
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With some special forms of life insurance the results are different.
If you have a joint life policy where two individuals are covered, the policy proceeds are paid and the surviving individual receives a new policy at current rates with them listed as the insured. If the policy is a last to die policy, proceeds are not paid until the surviving insured dies.
After you pass away, the policy on your life is no longer in effect.