The only beneficiary named in a life insurance policy died before the insured. The policyowner did not name a new beneficiary. When a claim is filed, the death benefit would be paid to the

Rationale

Death benefit would be paid to the insured's estate.

In the absence of a designated beneficiary due to the beneficiary's prior death, the life insurance proceeds will typically revert to the insured's estate. This ensures that the funds are distributed according to the deceased's will or, if there is no will, according to state laws of intestacy.

A (insured's estate.) CORRECT

This choice is correct because when the named beneficiary dies before the insured and no new beneficiary has been designated, the death benefit is paid to the insured's estate. The estate will then handle the distribution of funds according to the insured's wishes or state law.

B (policyowner.) YOUR ANSWER

The policyowner does not automatically receive the death benefit unless they are also the insured. If the insured passes away, the benefits do not go directly to the policyowner unless they are the same person or there are no other beneficiaries named.

C (beneficiary's estate.) YOUR ANSWER

Although the original beneficiary has passed away, their estate does not receive the death benefit unless the policy specifically names the beneficiary's estate. In this case, since the beneficiary died before the insured and no new beneficiary was appointed, the benefit does not go to the beneficiary's estate.

D (insured's next of kin.) YOUR ANSWER

The insured's next of kin would not automatically receive the death benefit in this scenario, as beneficiaries must be specifically named in the policy. Without a valid beneficiary, the proceeds go to the estate rather than directly to next of kin.

Conclusion

In this situation, the death benefit is directed to the insured's estate when the named beneficiary predeceases the insured and no replacement is made. This outcome aligns with standard practices in life insurance where the absence of a valid beneficiary results in the allocation of benefits to the estate, ensuring proper legal distribution.

The only beneficiary named in a life insurance policy died before the insured. The policyowner did not name a new beneficiary. When a claim is filed, the death benefit would be paid to the

Death benefit would be paid to the insured's estate.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test