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

Insured’s estate.

When the only named beneficiary in a life insurance policy dies before the insured and no new beneficiary is designated, the death benefit is paid to the insured's estate. This is due to the fact that the policy does not have a living beneficiary to receive the benefit, and thus it reverts to the estate of the insured.

A (Policyowner) YOUR ANSWER

The policyowner does not automatically receive the death benefit unless they are also the insured. In this case, since the only beneficiary has passed away, the benefit does not go directly to the policyowner but rather to the insured's estate.

B (Beneficiary’s estate) YOUR ANSWER

The beneficiary's estate is not entitled to the death benefit because the beneficiary must be alive at the time of the insured's death to claim the benefit. Since the beneficiary has died, their estate cannot make a claim on the life insurance policy.

C (Insured’s next of kin) YOUR ANSWER

The insured's next of kin is not automatically entitled to the death benefit. It is the insured's estate that receives the benefit in the absence of a living beneficiary, as the estate will manage the distribution of assets according to state law and the deceased's will.

D (Insured’s estate) CORRECT

The insured's estate receives the death benefit when the named beneficiary has predeceased the insured and no alternative beneficiary is designated. This ensures that the proceeds are then managed and distributed according to the terms of the estate, in accordance with legal requirements.

Conclusion

In situations where a life insurance policy's sole beneficiary dies prior to the insured without a new beneficiary being named, the death benefit defaults to the insured's estate. This mechanism ensures that the funds are appropriately allocated according to the deceased's wishes or state law, thereby preserving the integrity of the policy and protecting the interests of the insured's heirs.

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:

Insured’s estate.

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