In which distribution method are benefits passed down in equal shares if a beneficiary predeceases the insured?

The distribution method described, where benefits are passed down in equal shares if a beneficiary predeceases the insured, is known as per stirpes. This method ensures that if a named beneficiary dies before the insured, their share of the benefits will not simply disappear. Instead, that share is distributed equally among the descendants of the deceased beneficiary. This means that the heirs of the deceased beneficiary will receive what their parent would have received.

This approach differs from per capita, which distributes benefits equally among living beneficiaries at the same generational level, without considering the deceased beneficiaries' descendants. Joint tenancy and life tenancy approaches focus on property rights and living arrangements rather than the distribution of life insurance benefits, making them irrelevant in this context. Per stirpes is specifically tailored to maintain fairness among family members by allowing for continued inheritance through generations.