How does an insurance company decide on the payout for the deceased beneficiaries?
I Am The Truth asked:
If the deceased person had supplemental life insurance through their job that was 5 times their annual salary. How does the insurance company decide how much the beneficiaries should receive if they even receive anything.
If the deceased person had supplemental life insurance through their job that was 5 times their annual salary. How does the insurance company decide how much the beneficiaries should receive if they even receive anything.
January 26th, 2010 at 4:10 am
The insurance company doesn’t “decide”. They go with however much insurance was purchased. They pay out exactly who was named as beneficiary, exactly the percentage or dollar amount that the deceased told them to pay out.
It’s all decided by the insured, on a group life policy.
January 27th, 2010 at 2:48 am
There is no “deciding.” The insurance company pays the policy benefit to the named beneficiary(ies).
January 27th, 2010 at 2:51 am
The payouts go to the beneficiaries as they are listed on the policy. It depends on whether they’re listed outright which means it would travel to the estate OR the insured could have listed “to the survivors” in which case it would be split (as dictated in the policy) to the remaining beneficiaries.
January 30th, 2010 at 5:34 am
The only item to be calculated is if there were multiple beneficiaries. Say if an insured listed 2 primary beneficiaries at 50% each.