Many policies contain a beneficiary survival clause requiring the beneficiary to survive the insured for a stated period, commonly 30 or 60 days. The purpose of this clause is to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A survival clause, sometimes called a common disaster provision, requires the beneficiary to outlive the insured by a fixed period, such as 30 or 60 days. If the beneficiary dies within that window, the proceeds pass as if the beneficiary had predeceased the insured - to the contingent beneficiary or the insured's estate. This avoids the administrative complication of proceeds being payable to a beneficiary who dies shortly after the insured, only to have the money flow through the beneficiary's own estate and possibly to unintended heirs. The clause preserves the insured's intended distribution.
Why the other options are wrong
- B) Claim investigation is a separate claims-process matter. It is not the purpose of a survivorship requirement, which concerns the order of death.
- C) The clause operates automatically at the insured's death. It is not a tool that gives the owner additional time to change beneficiaries.
- D) The clause directs proceeds away from a short-surviving beneficiary's estate. It does not award a share to the insured's estate.
Memory hook
Survive the insured by 30 days, or the benefit treats you as predeceased.