What does "per capita" mean in the context of life insurance beneficiaries?

In the context of life insurance beneficiaries, "per capita" translates to "by the head." This term is utilized to establish how proceeds from a life insurance policy are distributed among beneficiaries. When a policy specifies a per capita distribution, the benefits are divided equally among all named beneficiaries who are alive at the time of the policyholder's death.

For example, if a policyholder names three children as beneficiaries and passes away, each child would receive an equal share of the benefits, provided they are alive. If one of the children were to predecease the policyholder, their share would not pass on to their descendants but would instead be equally divided among the surviving siblings. This method ensures that each living beneficiary is treated fairly and uniformly, reflecting the intent of the policyholder to distribute benefits directly to individuals rather than through their estates or defined percentages.