Which designation provides that if a beneficiary dies before the insured, the beneficiary's share is redistributed only among the remaining living beneficiaries (and not to the deceased's descendants)?

Which designation provides that if a beneficiary dies before the insured, the beneficiary's share is redistributed only among the remaining living beneficiaries (and not to the deceased's descendants)?

• A. Per capita designation
• B. Per stirpes designation
• C. Irrevocable designation
• D. Estates

Answer: (A)

When a beneficiary dies before the insured, the way their portion is handled determines how the proceeds are distributed among the survivors. The option that redistributes that share only among the remaining living beneficiaries is per capita. Under this approach, the living beneficiaries divide the amount equally, and the deceased beneficiary’s portion does not pass to their descendants. For example, if three equal beneficiaries are named and one dies before the insured, the two survivors would split the proceeds equally. This differs from per stirpes, where the deceased beneficiary’s share would go to their own descendants. The other designations refer to different concepts: irrevocable designations limit changes to the beneficiary, and estates designations apply if there are no surviving beneficiaries.

When a beneficiary dies before the insured, the way their portion is handled determines how the proceeds are distributed among the survivors. The option that redistributes that share only among the remaining living beneficiaries is per capita. Under this approach, the living beneficiaries divide the amount equally, and the deceased beneficiary’s portion does not pass to their descendants. For example, if three equal beneficiaries are named and one dies before the insured, the two survivors would split the proceeds equally. This differs from per stirpes, where the deceased beneficiary’s share would go to their own descendants. The other designations refer to different concepts: irrevocable designations limit changes to the beneficiary, and estates designations apply if there are no surviving beneficiaries.