If someone dies shortly after purchasing a life insurance policy, the policy will typically pay out the death benefit to the beneficiary named in the policy. The death benefit is the amount of money the policy pays out to the beneficiary upon the insured person’s death. It is intended to provide financial protection to the beneficiary if the insured person dies.
To receive the death benefit, the beneficiary will typically need to provide the insurer with a death certificate and possibly other documentation as proof of the insured person’s death. The insurer will then review the policy and determine whether the death is covered under the terms of the policy. If the death is covered, the insurer will pay the benefit to the beneficiary.
It is important to note that there may be a waiting period before the policy becomes effective, known as the “contingent period.” If the insured person dies during this time, the policy will not pay out the death benefit. The length of the contingent period will vary depending on the specific policy.