YOU ASK:
What is the definition of Per Stirpes Beneficiary Designation?
WE ANSWER:
Per Stirpes Beneficiary Designation is one way to designate what the beneficiaries of a life insurance policy stand to receive upon the death of the insured person. It divides the death proceeds depending on the class of beneficiaries. For example, spouse of the insured or children of the insured are considered a class.
Per Stirpes Beneficiary Designation allows the descendants of the deceased beneficiary to receive the portion of death benefits due to the beneficiary.
For instance, Patrick assigns his two children Peter and Paul as his beneficiaries. In the event of Patrick's death, where Paul is the only surviving beneficiary, Peter's part of the death proceeds will not go to Paul. Instead, it will go to Peter's heirs.
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