If a designated beneficiary is deceased at the time of an insured person's death, what happens to the benefits?

When a designated beneficiary passes away before the insured individual, the benefits typically become part of the deceased insured's estate. This means that the life insurance or other benefits will be distributed according to the terms of the estate plan, or, in the absence of a will, according to the laws of intestate succession in the relevant jurisdiction. This provision is essential as it ensures that the benefits don't simply vanish and provides a clear path for distribution that is consistent with the overall estate of the deceased.

In scenarios where other options are mentioned, they may not apply universally to policies or laws governing such benefits. Charity, forfeiture, or reversion to the government would depend on specific policy provisions, statutory requirements, or unique circumstances that may not be applicable in most cases.