How are life insurance beneficiaries divided?
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How are life insurance beneficiaries divided?
Beneficiary forms vary among life insurance companies, so read the form carefully. Typically, the benefit is divided per capita by default among the living primary beneficiaries, and you have to indicate \u201cper stirpes\u201d if you want money distributed to the children of a beneficiary who has died.
What is a beneficiary who is most often named a beneficiary in a life insurance policy?
Your primary beneficiary is the original person or organization you designate with the insurer to receive the life insurance benefit when you die. Most people designate their spouse or partner. You can also name multiple beneficiaries and determine how much of a stake in the payout each one gets.
Does spouse have to be beneficiary?
If you are married or in a common-law relationship of more than two years, your spouse is automatically your beneficiary. This means that if you die: Before you retire and before your earliest retirement age, your spouse is eligible for either: An immediate pension.
