If You are Listed in a Life Insurance Policy as a Beneficiary Along With a Person That is Deceased, Who is Awarded the Benefits?
Typically, if one of the beneficiaries in the policy is already deceased, then the benefits will be automatically awarded to the living beneficiary. Nevertheless, there may be other factors that have to be considered before the benefits can be rightfully awarded to the beneficiary on file.
Types of beneficiary
This type of beneficiary is common in insurance policies because it is provided by the policy holder in assurance that the claim benefits will be rightfully awarded to the person who deserves it. The most common contingent beneficiaries that a policy owner may choose may either be his or her children, spouse or wife, friends or relatives. At times, it can even be a non-profit organization.
Including a contingent beneficiary on your insurance policy is not too difficult. At times, a simple of letter of instruction which is duly signed by the policy holder is already enough for the processing of the changes. So if you happen to be the contingent beneficiary and the principal beneficiary unfortunately passes away, then you are the one who will be awarded the money claims.
Transfer on Death (TOD)
Another type of beneficiary is Transfer on Death beneficiary, or also known as TOD. Upon the death of the policy holder, all of the assets, policy value and death benefits should be awarded to the beneficiaries. If one of the beneficiaries is already deceased, then the living beneficiary is entitled to get the amount.
TOD is another method which can be applied if you do not wish your estate to go to probate. You can specify in the policy the percentage each of the listed beneficiaries can claim upon your demise.
If you are the trustee of the deceased accounts, then you may be entitled to get your portion of the insurance claim. Nevertheless, the percentage which you should receive should be provided only after interpretation of the policies indicated in the trust. You may require a lawyer to settle this matter if you are listed as one of the trustees.
If the beneficiary on file is still a minor, then the management of the claim money may be handled by his or her parents. If the insurance company denies you this as the guardian of the beneficiary, then you may petition the court to help you with this legal impediment. If the minor is left with no legal guardian, then the court may decide who his temporary representative will be.
The Process of Filing a Claim
1. Prepare a copy of the death certificate for both the policy owner and the other beneficiary.
2. Get ready with a copy of the policy of the principal which specifically states that you are one of the beneficiaries on record.
3. Accomplish the claimant form.
4. Do a constant follow-up on your request.
5. Wait for possible clarifications either through mail or through phone. Otherwise, simply wait for your check to arrive in the mail.