What happens if my life insurance beneficiary dies before me?
Answered by 9 licensed agents
In this case it is simple to take care of. You just have to make a change to the policy to reflect a new primary beneficiary. It is always good practice to have a contingent beneficiary on your life insurance policy.
It is necessary then to have a "contingent" beneficiary. Typically this is done at time of application, but if not then one would need to be declared and thus an amendment would be made to the policy reflecting a contingent beneficiary.
If you have not set up a contingent beneficiary, it would go through probate. However, you are able to change the beneficiary and update both at any time by reaching out to the insurance company you have your policy with.
If your life insurance beneficiary dies before you, the money usually goes to your contingent beneficiary if you named one. If you did not name a backup beneficiary, the payout may go to your estate, which can delay things and possibly involve probate.
Most people list a "contingent beneficiary" so that if your primary beneficiary passes before you the policy can still benefit one of your loved ones or the charity of your choice. Your life insurance agent should be able to facilitate this for you.
If a beneficiary dies, you should contact your life insurance company directly to request a beneficiary change form and name new primary and contingent beneficiaries.
If your beneficiary passes away before you, you can simply update your policy and name a new beneficiary. If you don't make a change, the benefit would generally go to your contingent beneficiary or according to the policy terms.
If you have a contingent beneficiary listed on your policy they will become your primary beneficiary if your primary beneficiary passes before the insured. If you do not have a contingent beneficiary on you policy you can add a new beneficiary once your primary beneficiary passes away or if no beneficiary is designated at the death of the insured then the benefits are paid to the insured's estate.
This is such a great question and why you need to review insurance policies regularly! If your beneficiary passes away before you do, you will want to name a new beneficiary. If you don't, the money won't know where to go. If your primary beneficiary passed away before you but you named a contingent beneficiary (basically a back up), the money will pass to the contingent beneficiary. I always suggest naming both a primary and contingent beneficiary at the time of the application just in case.
