What Happens To Life Insurance With No Beneficiary at Life

What Happens To Life Insurance With No Beneficiary. If there is no beneficiary named within a life insurance policy but a will has been set up, the person named as the main beneficiary of the estate will receive the funds. If the insured dies and there is no life insurance beneficiary listed on the policy, the death benefit will go to the estate of the deceased insured.

However, after december 13, 1982, even when a policy’s proceeds are paid to the estate instead of a beneficiary, no inheritance tax is assessed. However, the amount you receive may be significantly diminished due to tax implications and debt payoffs. In these cases, the death benefits of the life insurance pass to the estate of the deceased, that is, of the deceased insured.

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This article will delve into what happens to life insurance with no beneficiary. But if the primary beneficiary never filed an insurance claim, the death benefit will go to the contingent beneficiary — as long as they file a claim. Well, without a listed beneficiary to claim the death benefit, the life insurance proceeds will be paid out to the estate of the deceased insured. If you die with no living beneficiary or no life insurance beneficiary is named, the death benefit will go to your estate, which is the sum of everything that you owned, including property, possessions, and investments.