What happens on a life insurance policy if the insured is the same person as the beneficiary and passes away?

The first thing that you must be aware of is the fact that a policyholder cannot be a beneficiary also. whenever you go to take a life insurance policy in your name, your insurer will ask you to furnish a series of details, primary of them being name and related information of your beneficiary. It is up to you to name anyone as your beneficiary, but it’s absolutely mandatory to name at least one person as beneficiary, although there can be more than one beneficiary if you feel so. So when the policyholder passes away, the beneficiary automatically becomes eligible for the proceed from the insurance company. In case the beneficiary is also not alive, then the insurance will see if you’ve named a secondary beneficiary in the plan. If so, they can stake a claim for the benefits, and if not the proceeds will be retained by the insurance company till such time a decision is taken on the matter at the highest level. Anyhow, the insured and the beneficiary cannot be the same person in a life insurance plan.

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