Who is the beneficiary in life insurance in the event of death?

The main objective of taking out life insurance is to ensure capital to cover unexpected situations and guarantee financial peace of mind for the insured and their families. In this article we explain who is the beneficiary of life insurance in the event of death.

What does it mean to be a beneficiary of life insurance

When life insurance is contracted for death, the beneficiary is the person designated by the insured to receive the payment of the insured benefit in the event of death.

It must be taken into account that anyone can have the status of beneficiary of life insurance, since it is the insured who designates him, regardless of whether he is related to the insured or not.

Designation of beneficiaries

The beneficiaries can be designated by the insured expressly (when the insured designates them with names and surnames.) And generically (when the insured does not make the designation referring to specific people, but only indicates their relationship, for example: children, spouse, heirs, nephews, etc.).

When the insured has not designated the beneficiaries of the contracted life insurance either generically or expressly, the order of priority established in the policy will be applied as it appears in the Adhesion Bulletin, which the insured had to sign when contracting the life insurance and in the Certificate issued.

According to this order, in the first place, the beneficiary would be the surviving spouse. If missing, the beneficiaries would be the surviving children of the insured in equal parts. In case of having children or not being alive, the beneficiaries would be the parents of the insured (in equal parts or the survivor for the whole). Furthermore, failing that, the legal heirs of the deceased would be the beneficiaries of the life insurance.

The designation of life insurance beneficiary or beneficiaries can be changed or modified at any time while the policy is in force. There are two ways to do this: it can be done by written communication to the insurance company or insurance mediator, or by expressly indicating it in the will.

Generic designation of beneficiaries

If the children are generically designated as beneficiary, all the descendants of the insured who have the right to inheritance without any exception will be understood as such.

If the spouse is generically designated as beneficiary, the spouse who has this condition at the time of the insured’s death will be considered as such, and not at the time of taking out life insurance.

Distribution of compensation when there are several heirs

In the case of several beneficiaries, the contracted benefit will be
distributed equally, unless the insured has designated a specific distribution.

When the appointment is made in a generic way in favor of the heirs, the distribution will be made in proportion to the hereditary quota, unless otherwise agreed.

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