What happens if there's no beneficiary on a life insurance policy?

Life insurance with no living primary beneficiaries or contingent beneficiaries is paid out to the insured's estate. Depending on the insured's will and financial affairs, the payout may be subject to a lengthy probate process and other potential consequences — consult with a financial or tax advisor to understand the details of your situation.

As a result, the insured's heirs may ultimately receive less than the policy's original death benefit, and it'll take longer for them to receive it than if they were named as beneficiaries of the policy. That's why it's important to regularly review your life insurance policy and name at least one primary and one contingent beneficiary.

How can named beneficiaries access a life insurance payout?

The insured's life insurance company needs to be notified of their death and receive a valid claim from a beneficiary or beneficiaries before it can pay out the death benefit. The insured may have pre-authorized their financial advisor to contact the insurance company and beneficiaries to initiate the claims process upon the insured's passing.

If the beneficiaries aren't informed about an insured's policy, there are ways for them to find it and file a claim. Learn more about how to locate an unclaimed life insurance policy.

How to get life insurance from eFinancial through Progressive

Get a life insurance quote online and compare rates in as little as 60 seconds or call 1-866-912-2477 to speak with a licensed representative who can help you find the right policy for you.