A 40-year old man buys a whole life policy and names his wife as his beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the proceeds will go toA. The insurance companyB. The insured's estateC. The insured's firstborn childD. Both children who share equally on per-capita basis

Question

Xiomara Petty

Social Studies

15 January, 19:53

A 40-year old man buys a whole life policy and names his wife as his beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the proceeds will go toA. The insurance companyB. The insured's estateC. The insured's firstborn childD. Both children who share equally on per-capita basis

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Deon Blankenship · Answer 1

Answer: D)

Explanation: When the insured has not designated the beneficiaries of the life insurance contracted either generically or expressly, the order of priority established in the policy will be applied as it appears in the adhesion bulletin, which the insured had to sign when hiring the life insurance and in the certificate issued. For that reason, the first beneficiary is the surviving spouse, after the children and otherwise, the legal heirs of the deceased would be the beneficiaries of life insurance.