What is the definition of Per Capita Beneficiary Designation?
Per Capita Beneficiary Designation is one way a life insurance policy's beneficiaries can be designated. These beneficiaries equally share the death benefit, as long as a beneficiary survives the insured.
For instance, John designates Paul, Patrick, Pam and Pat as his beneficiaries. Under the Per Capita Beneficiary Designation, each of these beneficiaries will receive 25% of the death benefit. However, If only Paul and Patrick survive the insured, they will divide the death benefit between the two of them and thus get 50% of the death benefit.
This is different from the per stirpes beneficiary designation, where the death benefits are distributed according to a class and may vary depending on the number of people falling under a class.
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- Per Stirpes Beneficiary Designation
- Peril
- Period Certain
- Personal Articles Floater
- Personal Injury Protection Coverage (PIP)
- Personal Lines
- Point-of-Service Plan
- Policy
- Policy Dividend Options
- Policyholders’ Surplus
- Pension
- Pension Benefit Guaranty Corporation
- Payout Options
- Pay-At-The-Pump
- Participating Policy
- Partial Disability
- Paid-Up Policy
- Paid-Up Additional Insurance Option
- Package Policy
- Over-The-Counter (OTC)