Question 69

The proceeds will be paid to the insured's estate.

If there are no beneficiary changes, the proceeds from the insurance policy will default to being paid to the insured's estate.

A) insured's estate

This option is correct because, in the absence of designated beneficiaries, the proceeds of an insurance policy will typically go to the estate of the insured. This ensures that the funds are distributed according to the terms of the will or the laws of intestacy if there is no will.

B) son's estate

This option is incorrect as the proceeds will not automatically go to the son's estate unless he was specifically named as a beneficiary. Without beneficiary designations, the funds do not flow directly to relatives but rather to the insured's estate.

C) spouse's estate

This option is also incorrect. Similar to option B, the proceeds will not go to the spouse's estate unless the spouse was named as a beneficiary. The default recipient in the absence of beneficiaries is the insured's estate.

D) surviving children

This option is incorrect because the insurance proceeds do not automatically go to the surviving children unless they are designated beneficiaries. In the absence of such designations, the funds will be directed to the insured's estate for distribution.

Conclusion

The proceeds will be paid to the insured's estate when there are no designated beneficiaries, making option A the only correct choice. All other options fail because they presume a beneficiary designation that does not exist in this scenario, highlighting the importance of clearly naming beneficiaries in an insurance policy.