Question 69

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

In the absence of any 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 when no beneficiaries are designated or if all designated beneficiaries predecease the insured, the proceeds will be directed to the insured's estate as per standard insurance policy provisions.

B) son's estate

This option is incorrect because the proceeds will not automatically be paid to the son's estate unless he is specifically named as a beneficiary. Without such designation, the funds do not transfer to the son's estate.

C) spouse's estate

This option is also incorrect as the proceeds will not be paid to the spouse's estate unless the spouse is explicitly named as a beneficiary. The default is to the insured's estate in the absence of named beneficiaries.

D) surviving children

This option is incorrect since the proceeds will not go to the surviving children unless they are named beneficiaries. The policy defaults to the insured's estate when there are no beneficiary changes.

Conclusion

The correct answer is definitively right because it aligns with the standard protocol for insurance proceeds when no beneficiaries are designated. All other options fail to meet the criteria established by the lack of beneficiary changes, as they suggest distributions that are not applicable under the stated circumstances.