Without a named beneficiary, life insurance proceeds go to your estate, triggering the probate process, potential taxes, and creditor claims.
Updated: January 22, 2026
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Life insurance with no valid beneficiary defaults to the policyholder's estate and enters probate.
Probate can take months to over a year and may expose proceeds to creditors and estate taxes.
Naming primary and contingent beneficiaries, and keeping them updated, provides financial protection for your loved ones by ensuring they receive the death benefit directly.
State laws vary regarding life insurance beneficiary requirements and probate processes. Consult with a qualified estate planning attorney for advice specific to your situation.
Life insurance policies usually require at least one beneficiary, but there are circumstances that can leave a policy without a valid beneficiary.
Without a designated beneficiary, life insurance proceeds become part of your estate. This can delay payouts, reduce the amount your heirs receive or potentially work against your final wishes.
A life insurance beneficiary is the person or entity you choose to receive your policy's death benefit. Your beneficiary can be a family member (like spouse or child), business partner, trust, charity or multiple people.
If you pass away while the policy is active, your beneficiary file a claim with the insuer and receive the payout directly.
Most beneficiary designations are revocable, meaning you can change them at any time. Irrevocable beneficiaries require consent to make changes
Certain situations can result in a life insurance policy having no valid beneficiary, such as:
If your sole primary beneficiary passes away before you do and no contingent beneficiary is named, the death benefit will go to your estate. You can update your beneficiary designation at any time while you're still living. Regular policy reviews, especially after major life events, keep your beneficiaries current.
Sometimes a beneficiary survives the policyholder but passes away before they can file a claim. In most cases, the death benefit then goes to the deceased beneficiary's estate. Rules vary by state, and the situation can become particularly complex when the deaths occur close together in time.
When a policyholder and their beneficiary die at the same time, such as in an accident, the situation is generally treated as if no beneficiary exists. The proceeds may then go to a contingent beneficiary, any remaining primary beneficiaries, or the estate.
State laws known as "simultaneous death acts" and specific policy terms determine the outcome.
If you've named multiple primary beneficiaries and one passes away before you, the remaining beneficiaries receive the deceased person's share. This is one reason why naming multiple beneficiaries protects your estate plan.
If all primary beneficiaries are deceased when you pass away, the death benefit goes to your contingent beneficiaries (or to your estate if none are named).
Most insurers require at least one beneficiary, but administrative errors or incomplete paperwork can sometimes result in no beneficiary on file. When this happens, proceeds default to the estate and enter probate, which can cause delays and complications.
Certain beneficiary designations cause problems:
Life insurance without a beneficiary sends the death benefit to your estate. This triggers several consequences that can impact your family.
Probate is the legal process through which courts determine how a deceased person's assets are distributed. Once life insurance proceeds go to your estate, they enter this process. A court will approve an executor, locate and value assets, pay any outstanding debts and taxes and finally distribute what remains to heirs.
Probate can take several months to a year, and much longer if your will is contested or your estate is complex. During this time, your family may be unable to access the funds they need.
Here's what it can cost your family when life insurance enters the estate:
Manage your beneficiary designations to ensure your loved ones receive the death benefit directly, which avoids probate delays and creditor claims.
Designate more than one primary beneficiary to have a built-in backup if one passes away before you. Specify how you want the death benefit divided. Percentages must total 100%.
If one beneficiary predeceases you, the remaining beneficiaries receive that person's share.
Contingent beneficiaries act as a safety net. They receive the death benefit only if all primary beneficiaries are unavailable. Consider naming multiple contingent beneficiaries as well. This adds backup coverage to prevent your policy from defaulting to your estate.
These terms describe how the death benefit is distributed if a beneficiary predeceases you:
Per stirpes ("by branch"): If a beneficiary dies before you, their share passes to their descendants. For example, if your daughter is a beneficiary and she predeceases you, her children (your grandchildren) would receive her share.
Per capita ("by head"): If a beneficiary dies, their share is redistributed among the remaining living beneficiaries. The deceased person's heirs receive nothing.
Per stirpes designations aren't available with all life insurance policies or insurers. Contact your insurance company to confirm available options
Review your life insurance policy after major life events, such as marriage, divorce, birth of children, death of a beneficiary or significant changes in relationships. Many financial advisors recommend reviewing beneficiaries annually or at least every two to five years.
Beneficiary designations on your life insurance policy override instructions in your will.
Include your beneficiaries' full legal name, date of birth and Social Security number. Avoid generic terms like "my spouse" or "my children," which can cause confusion and legal disputes.
Your beneficiaries need to know they're named on your policy. Share the following information:
While there's no deadline for claiming life insurance benefits, your beneficiaries need to file a claim with the insurance company to receive the payout. Having this information in advance simplifies the process during a difficult time.
For complex situations, an Irrevocable Life Insurance Trust (ILIT) can provide advantages:
Setting up a life insurance trust requires working with an estate planning attorney. A trust may be worth exploring if you have significant assets, minor children or beneficiaries who might not be able to manage a large sum responsibly.
Life insurance provides financial security for the people you care about. But without a valid beneficiary designation, those financial safeguards fail. When proceeds go to your estate instead of directly to your loved ones, they face potential delays, legal fees, estate taxes and creditor claims.
The solution is straightforward: take an active role in managing your beneficiary designations. Name both primary and contingent beneficiaries. Update your policy after major life events and review it regularly. Be specific with names and identifying information.
For added security, consider per stirpes designations to protect generational inheritance, or consult with an estate planning attorney about whether a trust works for your situation.
We answer common questions about what happens when your life insurance has no beneficiary.
Yes, you can change your beneficiary at any time by contacting your insurance company and completing a beneficiary change form. The exception is if you have an irrevocable beneficiary designation, which requires the consent of that person to make changes.
Life insurance proceeds paid directly to a named beneficiary are protected from the deceased's creditors. If proceeds go to the estate due to no beneficiary, they may become available to pay the deceased's debts during probate.
Contact the insurance company directly with the policy number if known. If you don't know the insurer, search through the deceased's documents, contact their employer's HR department for workplace policies, or use the NAIC Life Insurance Policy Locator service.
Learn more: How to Find Life Insurance Policies of Deceased Parents & Loved Ones
Yes, but minors can't legally manage the funds themselves. The court will appoint a custodian to manage the money until the child reaches the age of majority. For more control over how and when funds are distributed, consider naming a trust as the beneficiary instead.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
