If an insured dies shortly after changing policy beneficiaries, who typically receives the benefits?

If an insured dies shortly after changing policy beneficiaries, who typically receives the benefits?

• A. The previous beneficiary only
• B. The new beneficiary designated
• C. The insurer keeps the benefits
• D. The estate of the insured

Answer: (B)

When an insured changes the beneficiaries on their life insurance policy, the new beneficiary designated typically receives the benefits upon the insured's death, assuming that the change was properly executed and in accordance with the policy's requirements. This is rooted in the principle of contract law where the policyholder has the right to designate who they wish to receive the death benefit. Insurance policies allow for beneficiaries to be changed to reflect the insured's wishes, and upon changing the beneficiary, the insurer is bound to follow the latest instruction unless there are legal complications or issues surrounding the validity of the change. The death of the insured shortly after the change does not affect the validity of the newly appointed beneficiary as long as the change was made correctly prior to the insured's passing. This process ensures that the insured's current wishes regarding the distribution of their benefits are honored, demonstrating the dynamic nature of insurance policies and the importance of keeping beneficiary designations up to date.

When an insured changes the beneficiaries on their life insurance policy, the new beneficiary designated typically receives the benefits upon the insured's death, assuming that the change was properly executed and in accordance with the policy's requirements. This is rooted in the principle of contract law where the policyholder has the right to designate who they wish to receive the death benefit.

Insurance policies allow for beneficiaries to be changed to reflect the insured's wishes, and upon changing the beneficiary, the insurer is bound to follow the latest instruction unless there are legal complications or issues surrounding the validity of the change. The death of the insured shortly after the change does not affect the validity of the newly appointed beneficiary as long as the change was made correctly prior to the insured's passing.

This process ensures that the insured's current wishes regarding the distribution of their benefits are honored, demonstrating the dynamic nature of insurance policies and the importance of keeping beneficiary designations up to date.