Who receives the life insurance payout if the beneficiary has died or there is none?

Question

José Manuel Alburquerque · Accepted Answer

If there were several beneficiaries and one of them died before the insured, in principle that beneficiary's share is added to those of the others. If there was only one, the order that many policies lay down for such cases applies, for example the spouse, the children, the parents and the heirs. If no beneficiary has been designated and the policy contains no rules for working out who it is, the money becomes part of the assets of the person who took out the policy. If that person was the deceased, it is paid to their heirs as part of the estate. If the beneficiary died after the insured without having been paid, the right is regarded as already theirs and it is their own heirs who receive the money. When the beneficiary died first If there were several, the share of the one who died is added to those of the others, unless the policy provided a substitute for that beneficiary. If the policy said “my children”, the children of the one who died can take their parent's place, because the law includes in that wording all descendants entitled to inherit. If there was only one, what applies is the order of beneficiaries that the policy lays down for when the designated beneficiary is missing. A very common one is the spouse, if not separated, then the children, then the parents and lastly the heirs. If the policy has no such order, the sum insured becomes part of the assets of the policyholder, that is, the person who took out the policy. If they died in the same accident and it is not known who died first, the law presumes that they died at the same time. The same then applies as if the beneficiary had died first. When the beneficiary died later The right to the sum insured is regarded as arising on the death of the insured. If the beneficiary was alive at that moment, the money was already theirs even if they died before receiving it. It is claimed by their heirs, not by those of the insured. When the money goes into the estate If the sum insured becomes part of the policyholder's assets and the policyholder was the deceased, it forms part of their estate. It is paid to the heirs as provided by the will or by law, it can be used to pay the deceased's debts and anyone who renounces the inheritance does not receive it. Bear in mind that it is not enough for someone's name to appear on the insurance application. The designation must appear in the policy, in a written notice sent to the insurer or in the will.