Yes. A beneficiary may disclaim his or her interest in the policy. A disclaimer of benefits by a beneficiary will result in the proceeds being paid to whomever would have received the proceeds had the disclaiming beneficiary predeceased the insured.

Can you refuse a life insurance payout?

Key takeaways: You’re able to forfeit money received from a life insurance death benefit. An insured person may forfeit a life insurance policy if they stop making payments. You may be able to get money from a lapsed life insurance policy depending on the type of policy.

What happens if beneficiary does not claim life insurance?

Most likely, your primary beneficiary is still the recipient because they were living at the time of your death. But if the primary beneficiary never filed an insurance claim, the death benefit will go to the contingent beneficiary — as long as they file a claim.

Can a primary beneficiary refuse the proceeds of a life insurance policy?

However, when the primary beneficiary disclaims the proceeds, he or she doesn’t have the right to decide who should be paid instead. If you waive your rights to the money, the life insurance company will treat the circumstances as if you were a beneficiary who died before the insured.

What happens if the heir does not want life insurance proceeds?

The owner can also designate a contingent beneficiary to receive the proceeds if the primary beneficiary dies before the insured. Should you be the primary beneficiary and refuse to take the proceeds, the company will pay out to the contingent beneficiary. You might be one of several named beneficiaries or part of a general class.

What happens if the owner of a life insurance company dies?

The owner can also designate a contingent beneficiary to receive the proceeds if the primary beneficiary dies before the insured. Should you be the primary beneficiary and refuse to take the proceeds, the company will pay out to the contingent beneficiary.

Can a person change the beneficiary of a life insurance policy?

It is important to understand that a life insurance policy is a contract: the terms of the life insurance contract will supersede the terms of your last will and testament. Therefore, you can’t change the beneficiaries of a policy by just changing your will. You need to contact the insurance company and follow its procedure (usually a simple form).