Per Capita vs Per Stirpes

Divided by family branch, so each branch shares equally and a deceased beneficiary's share passes to that branch's descendants. — Per stirpes means 'by branch.' The death benefit is divided at the first generation of named beneficiaries, and each branch receives an equal share. If a beneficiary in a branch has already died, that branch's share passes down to that beneficiary's own descendants. Per capita, by contrast, divides the proceeds equally among all living named individuals, and a deceased beneficiary's share simply stays in the pool for the others. The choice matters for estate distribution and must match the policyowner's intent.

National insurance concept

It passes to the deceased child's two children, who divide it equally between them — Under a per stirpes designation, the deceased beneficiary's share passes down to that beneficiary's descendants, who take by right of representation. Here the deceased child's share is divided equally between her two children. This contrasts with per capita, under which the surviving named beneficiaries would split the entire fund equally and the deceased child's descendants would receive nothing unless the designation provides otherwise.

National insurance concept