If there are 2 or more beneficiaries receiving an annuity payment, what happens if 1 beneficiary passes away?
Posted on July 28th, 2008 in Annuity Insurance
Bryan A asked:
This is an immediate annuity that was being paid out and the annuitant passed away, therefore the payments were going equally to 4 beneficiaries. What would happen if one of those beneficiaries then dies? Is the money then split 3 ways? Does the insurance company keep that share? Or can each beneficiary name a contingent beneficiary?
This is an immediate annuity that was being paid out and the annuitant passed away, therefore the payments were going equally to 4 beneficiaries. What would happen if one of those beneficiaries then dies? Is the money then split 3 ways? Does the insurance company keep that share? Or can each beneficiary name a contingent beneficiary?
This post has 3 comments
July 29th, 2008
It becomes a part of the deceased beneficiaries estate and will ultimately go to his/her heirs.
August 1st, 2008
If there was a contingent, then they will get that percentage. Otherwise, I believe that the total would be divided by 3 now.
August 4th, 2008
It all depends on how the initial beneficiary designaiton was set up. If the choice was to have it go to say 4 people but there was a per stirpes provision, the benefit paid to say the 4th person who died would be divided between his/her heirs. If it goes to joint and survivor, then the benefit would be divided among the remaining three beneficiaries.
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