Question
Life Insurance question?
Hi, what happens to my life insurance (in case i die) if there are no beneficiaries on the policy, does it automatically go whoever is listed on my will? Thanks Me and my wife have each other as beneficiaries but we didn't list any other beneficiaries in case we both die. We do have a will with detailed beneficiaries for all of our assets/wealth. What does "my estate" mean? What will happen to our life insurance money if we both die? Thanks a lot for your help.
5 months ago - 6 answers
Best Answer
Chosen by Asker
By estate people mean that it will fall under the wording of your will. Keep in mind that by doing this it will have to go through probate which costs money. It is best to name a contingent beneficiary which is easy to do. If it is a significant policy you could always leave it to a trust so that it won't go through probate and you can have more flexibility on where the money goes than just a listed beneficiary. Please let me know if you have any questions.
Source(s)
by CJBowker
5 months ago
Asker's Rating: 
Other Answers
It probably goes into your estate - which you don't want to happen. Check the laws for your specific state, but alway keep beneficiary designations current.
by jlf- 5 months ago
Why do you have life insurance if you have no beneficiaries? PUT the beneficiearies on your life insurance! That way if you will goes into probate the life insurance should not get tied up.
by idahojule- 5 months ago
No. The benefits would be payable to your estate, in the absence of a person or organization or a business as your beneficiary;.
by Barry auh2o- 5 months ago
If you have no beneficiaries on your policy, it will get paid to your estate and be subject to Estate taxes. Then the executor of your estate will divide out the money according to your will and their understanding of your wishes. Of course any money that the estate pays out is taxable. If you don't have your policy pay out a beneficiary, up to 96% of that payout can disappear into uncle sam's wallet. If it gets paid to a beneficiary, 0% of the life insurance policy is taxed.
by saberhilt- 5 months ago
No, it goes to your estate. It then pays off all your debts, and then gets distributed like the rest of your assets, through your will if you have one. But you can't take out a life insurance policy, without naming a beneficiary.
by mbrcatz- 5 months ago