Life insurance policies are intended to pay out a sum to a beneficiary when an individual dies. But not all life insurance policies have a beneficiary -- so what happens to the policy? This can be complicated to answer depending on the situation.
Why Would a Life Insurance Policy Be Without a Beneficiary?
Sometimes individuals simply fail to update their insurance policies. Though they may have gotten married or had a child, they might not have updated their paperwork since they were single -- consequently there's no listed heir.
Life insurance is something that you may not consider until it's too late to get coverage. Here are some of the qualities that make someone a good candidate for life insurance.
When Someone Depends on Your Income
The first factor is whether or not you have a solid income that someone else depends on. For example, if you are the main earner in your marriage, your spouse may be depending on your income for their future wellbeing.