Families who have lost a loved one with a life insurance policy often ask – can a life insurance policy have multiple beneficiaries? It is not uncommon for a life insurance policy to have multiple beneficiaries when family is involved and many clients who visit Saxton Law Firm have legal questions about the policy and the claims process with multiple beneficiaries. We are here to help answer all of your questions!
What Happens If Your Life Insurance Policy Has Multiple Beneficiaries?
You may not know it – but a life insurance policy can be written with multiple beneficiaries. The policy holder can name multiple beneficiaries on their policy and designate a percentage of the compensation for each individual named. For example – a father with three children can name each child in the policy and allocate a third of the total sum for each beneficiary. The total number of beneficiaries may be limited by the policy.
A second scenario that is not uncommon with life insurance policies is a named contingent beneficiary. In the event that the primary beneficiary for an insurance policy cannot be found or has died prior to the policy holder, the insurance payout would go to the named contingent beneficiary. For example – a spouse or partner may be named as the primary beneficiary to receive the total payout with your child or children as contingent beneficiary.
How Do Multiple Beneficiaries File a Claim?
When a life insurance policy names multiple beneficiaries, it is the responsibility of each individual to file a separate claim with the insurance provider. The claims can be submitted individually or together to avoid any complications. In most cases – only one death certificate will be needed by the insurance provider.
How Do Multiple Beneficiaries Get Paid?
Life insurance beneficiaries who submit a claim need to understand how the death benefit will be paid out. When there are multiple beneficiaries named on a policy, each beneficiary will most likely be paid individually as the claim is submitted. In most cases – the insurance provider should not require that all beneficiaries submit claims prior to making payments.
Are you a beneficiary named in a life insurance policy? Do you have legal questions about the policy? You may ask – can a life insurance policy have multiple beneficiaries? We can help answer your questions at Saxton Law Firm and can help you avoid any legal obstacles with your claim. Contact Saxton Law Firm today for a FREE case review!