How to claim life insurance proceeds if the named beneficiary dies after the insured but before payment? - Pennsylvania
The Short Answer
In Pennsylvania, who receives life insurance proceeds usually depends on the policy’s beneficiary designations and whether the beneficiary legally “survived” the insured. If the insured and beneficiary are treated as having died simultaneously (or there is no sufficient evidence of who died first), Pennsylvania law generally treats the insured as having survived the beneficiary—often pushing the proceeds to a contingent beneficiary or, if none, to the insured’s estate.
What Pennsylvania Law Says
Life insurance is typically a non-probate asset that pays according to the contract’s beneficiary designation, not the will. When timing of deaths is unclear, Pennsylvania’s survivorship rules can control how the insurer must treat the beneficiary designation—especially in “close in time” deaths where documentation is incomplete or disputed.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 8504.
This statute establishes that when the insured and the beneficiary have both died and there is no sufficient evidence they died other than simultaneously, the policy proceeds are distributed as if the insured survived the beneficiary.
Why You Should Speak with an Attorney
While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Insurers and estates often face time-sensitive claim requirements, and delays can increase the risk of disputes, escheat/unclaimed-property issues, or competing claims.
- Burden of Proof: The outcome can turn on whether there is “sufficient evidence” of the order of deaths (medical records, death certificates, coroner findings), which can be contested.
- Exceptions: Policy language (contingent beneficiaries, survival clauses, per stirpes provisions), and special disqualification rules (for example, Pennsylvania’s slayer/elder abuse provisions) can change who is legally entitled to receive the proceeds.
Trying to handle this alone can lead to an insurer paying the wrong party, a claim denial, or a probate dispute between the beneficiary’s estate, the insured’s estate, and any contingent beneficiaries.
Get Connected with a Pennsylvania Attorney
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.