Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
When a beneficiary designation states that the death benefit is to be divided 'per stirpes,' the proceeds are:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
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.
Why the other options are wrong
- B) That describes per capita distribution, where all living named beneficiaries share equally and no deceased member's descendants inherit.
- C) Per stirpes does not favor the oldest descendant; it divides by branch at the first generation and follows each branch down.
- D) The insurer does not hold proceeds until beneficiaries come of age under this provision.
Memory hook
Per stirpes: your dead branch's kids take your slice.