“Where does life insurance go if there is no beneficiary?”

The following is my answer to a Quora question: “Where does life insurance go if there is no beneficiary?”

Should there be no nominated beneficiary for a life policy, the policy pays out to the estate of the deceased, and distributed according to the will. It comes under the administration of the executor of the estate. If there is no will, and the deceased passed away intestate, the payout will still be consolidated with the rest of the estate, and distributed according to intestacy laws. If there was a beneficiary, and the beneficiary predeceased the deceased, meaning that the beneficiary passed away before the life insured, the policy pays out to the estate as if there was no beneficiary.

Terence K. J. Nunis, Consultant

[Shared with permission from: Quora Answer: Where Does Life Insurance Pay Out to if There is No Beneficiary?]


Image for illustrative purpose only.

A brief and apt answer by Terence. I’d like to add a few points:

  • Nomination of insurance policies is just as important as having insurance policies itself.
  • It is important to plan your finances with the end in mind: who would you like your insurance payout specifically, and your wealth generally, be paid out (or distributed) to should you no longer be around?
  • Estate planning (planning how your wealth should be distributed after your passing) is as important as financial planning; often, it is a misconception that having a will is sufficient.

Speak to a financial consultant/planner with regards to your estate planning needs and concerns.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create your website at WordPress.com
Get started
%d bloggers like this: