Under a life policy, who receives the death benefits if there is no assignment and no irrevocable beneficiary?

Under a life policy, who receives the death benefits if there is no assignment and no irrevocable beneficiary?

• A. The named beneficiary.
• B. The policyowner.
• C. The state.
• D. The insurer.

Answer: (A)

The person named in the policy as the beneficiary is the one who receives the death benefit. In a life policy, the owner designates who should receive the payout, and that designation controls who gets the proceeds at death. If there’s no assignment and no irrevocable beneficiary, the named beneficiary is the recipient because there’s no other mechanism in place to override that designation. An assignment affects who owns the policy, not necessarily who gets the death benefit, and an irrevocable beneficiary has a vested right that cannot be changed without their consent. If no beneficiary is named at all, the funds would typically go to the policyowner’s estate. The insurer does not keep the death benefit.

The person named in the policy as the beneficiary is the one who receives the death benefit. In a life policy, the owner designates who should receive the payout, and that designation controls who gets the proceeds at death. If there’s no assignment and no irrevocable beneficiary, the named beneficiary is the recipient because there’s no other mechanism in place to override that designation. An assignment affects who owns the policy, not necessarily who gets the death benefit, and an irrevocable beneficiary has a vested right that cannot be changed without their consent. If no beneficiary is named at all, the funds would typically go to the policyowner’s estate. The insurer does not keep the death benefit.