Who is the beneficiary in life insurance in case of death?
The main objective of hiring life insurance is to ensure capital to cover
unexpected situations and ensure economic security for the insured and their families.
What it means to be a beneficiary of life insurance
When a life insurance is contracted for cases of death, the beneficiary is the person designated by the insured to receive the payment of the insured benefit in case of death.
It must be borne in mind that any person can have the status of beneficiary of life insurance, since it is the insured that designates it, regardless of whether it has a relationship of kinship with 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 generic (when the insured does not make the designation referring to specific persons, but only indicates their kinship, 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 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). Failing that, the legal heirs of the deceased would be the beneficiaries of the life insurance.
At any time you can change or modify the designation of beneficiary or beneficiaries of life insurance while the policy is in force. To do so, there are two ways: it can be done by written communication to the insurer or insurance broker, or by expressly indicating it in the will.
Generic designation of beneficiaries
If, as a beneficiary, the children are generically designated, all descendants of the insured who are entitled to inheritance without any exception shall be understood as such.
If, as a beneficiary, the spouse is generically designated, it will be considered as such if they have that condition at the time of the death of the insured, and not at the time of contracting the life insurance.
Distribution of compensation when there are several heirs
In the case of several beneficiaries, the contracted benefit will be
distribute in equal parts, unless the insured has designated a specific distribution.
When the designation 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.
CALCULATES LIFE INSURANCE
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