Which clause is used to preserve the policyowner's intent in the event of simultaneous death where the order of death cannot be determined?

Which clause is used to preserve the policyowner's intent in the event of simultaneous death where the order of death cannot be determined?

• A. Common disaster clause
• B. Per stirpes designation
• C. Estates
• D. Aviation

Answer: (A)

When both the insured and the named beneficiary die in the same event and we can’t determine who died first, a common disaster clause resolves the payout. It preserves the policyowner’s intent by establishing a survivorship rule so the death benefit goes to the intended secondary or contingent beneficiary (or to an alternate designation) rather than becoming entangled in the deceased beneficiary’s estate. This keeps the funds aligned with the owner's plan, such as providing for a secondary beneficiary. Per stirpes deals with distributing an estate by branches of a family, not a life insurance survivorship issue; estates would apply if no beneficiary survives or if the policy dictates, and aviation is unrelated to these provisions.

When both the insured and the named beneficiary die in the same event and we can’t determine who died first, a common disaster clause resolves the payout. It preserves the policyowner’s intent by establishing a survivorship rule so the death benefit goes to the intended secondary or contingent beneficiary (or to an alternate designation) rather than becoming entangled in the deceased beneficiary’s estate. This keeps the funds aligned with the owner's plan, such as providing for a secondary beneficiary. Per stirpes deals with distributing an estate by branches of a family, not a life insurance survivorship issue; estates would apply if no beneficiary survives or if the policy dictates, and aviation is unrelated to these provisions.