In a previous post from 2021 I discussed occasions when a life insurance policy wouldn't pay out. One example I briefly mentioned was the "slayer rule" or "slayer statutes", which prevents anyone from benefiting from murdering you, if they are suspected of murder or plotting to murder you.
I had a few questions (off the record, nudge nudge, wink wink) and I thought it was an interesting topic, so here's a bit more information.
- Each state has its own version of Slayer Statutes.
- The rule applies even if there is no conviction.
- Even the suspicion of murder can disqualify your beneficiary from receiving life insurance proceeds or any other part of your estate.
- The disqualified beneficiary's proceeds can be distributed to other beneficiaries or the estate.
The bottom line here is that you should trust your beneficiaries to care more about you than any monetary proceeds that would come at your passing.
Chris Castanes is the president of Surf Financial Brokers, helping people find affordable life and disability insurance coverage. He's also is a professional speaker helping sales people be more productive and efficient and has spoken to professional and civic organizations throughout the Southeast. And please subscribe to this blog!