A small doubt. If in life insurance, estate is the beneficiary. Then what does it exactly mean. Like to whom will the money go after the insured person dies?
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If the estate is named as the beneficiary of a life insurance policy, it means that when the insured person dies, the death benefit will be paid to the estate of the deceased person.
The estate is the total property, assets, and liabilities that a person leaves behind after their death. When the death benefit is paid to the estate, it becomes part of the deceased person’s assets and will be distributed according to their will or the laws of intestacy if there is no will.
It’s important to note that naming the estate as the beneficiary can have some disadvantages, such as delays in the distribution of the death benefit, and the possibility of the money being subject to claims from creditors or taxes. Therefore, it’s important to speak with a financial advisor or attorney to determine the best beneficiary designation for your specific situation.