Life Insurance Policy Provisions, Options, and Riders
Three children share a benefit and one dies before the insured, leaving two children of her own. How do per stirpes and per capita designations differ here?
Answer and explanation
Answer: B. Per stirpes sends a deceased beneficiary's share down that branch of the family to her own children, while per capita divides the proceeds among the surviving named beneficiaries by head. Neither pays the deceased beneficiary's estate.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, per stirpes and per capita
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