Life · Chapter 6 · Beneficiaries
Distribution to an Estate
Definition
If no listed beneficiary is alive at the insured's death, proceeds go to the insured's estate — exposing them to federal/state estate taxes, probate fees, and creditors.
Exam tip
Naming an estate as beneficiary is typically NOT advisable for exactly these reasons.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms