The Beneficiary in Personal Insurance

The figure of the beneficiary appears in the so-called people insurance, mainly in life insurance. Remember that in an insurance contract different figures appear that can coincide in the same person or not.

The beneficiary is the person designated by the policyholder to receive the capital agreed in the policy. The beneficiary may be any person, whether family member or not of the policyholder.

It will always be the policyholder who chooses it, and will be able to change his mind as many times as he wishes.

Only in the group insurance, it will not be the policyholder but the insured who will be able to name the beneficiary.

Thus, whoever hires the insurance will decide who receives the insurance’s profit.

If the beneficiary is not the same person as the insured or the policyholder, they may not know that they have been designated as such. The taker will be free to communicate or not.

The beneficiary when the insured dies

When there is the death of the insured and this is not the same person as the beneficiary, the family when requesting the last wills will be notified if the insured had a life policy and who is the beneficiary, so that he can contact the company of insurance and claim the benefit that belongs to you.

If a person has contracted a life policy can be known through the public directory of the Ministry of Justice where all insurance contracts with death coverage appear.

Precisely, the only obligation that the beneficiary has is to communicate the fact in writing to the insurer within a maximum period of 7 days since he is aware of the incident.

If the insurance company requires it, it must provide all the necessary and complementary information for the processing.

The right of the beneficiary to receive the benefit

If the policyholder does not designate a beneficiary when contracting the insurance or it is impossible to determine it, the benefit will be included in the estate of the policyholder, which is why it will be part of his inheritance.

But it should be noted that this is the only case in which the benefit will be part of the inheritance of the policyholder because it is not so in the rest of cases.

The money, capital or provision of insurance with designated beneficiary, is not part of the inheritance of the policyholder or insured.

Therefore, in the event of any legal dispute between the heirs of the policyholder to claim their part of the benefit, it will not be a reason for distributing or forfeiting the beneficiary.

The beneficiary holder of a life insurance has the right to receive the benefit that the policyholder agreed with the insurance company when he contracted the insurance.

If for some reason, the policyholder had debts, the beneficiary will not inherit them. They can only claim reimbursement of the premiums paid by the policyholder in fraud of their rights.