Term
| the party named in the policy to receive the policy benefits |
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| the beneficiary who is first entitled to receive the policy proceeds on the insured's death |
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| more than one party can be named the primary beneficiary, but he amt each party receives must be |
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| is entitled to the proceeds if the primary beneficiary dies before the insured |
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| if the primary beneficiary dies before receiving the guaranteed # of pmts under an installment settlement option, the remaining pmts are paid to the |
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| in many families, the husband will name is wife what and his kids what? |
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| wife-primary beneficiary, kids-contingent beneficiary |
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| the legal problem with naming who beneficiaries is that they lack the legal capacity to receive the policy proceeds directly |
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| insurers generally will not pay the death proceeds directly to |
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| who do insurers generally pay death proceeds to on minor children's behalf? |
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| pmt of the proceeds may be delayed and legal expenses incurred if a court of law appoints a |
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| one solution is to name a guardian who can legally receive the proceeds on the children's behalf in the |
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| another solution is to appoint a trustee which has the discretion and authority to use the funds for the |
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| could be a commercial bank w/ a trust department |
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| the insured's estate can be named as |
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| primary or contingent beneficiary |
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| is not recommended b/c the death proceeds may be subject to attorney's fees, federal estate taxes, state inheritance taxes, and claims of creditors |
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Definition
| naming the estate as a beneficiary |
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| if the estate is named as a beneficiary, pmt of the proceeds may be delayed until the estate is |
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