Question

E and f are business partners. each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. e and f eventually terminate their business, and four months later e dies. although e was married with three children at the time of death, the primary beneficiary is still f. however, an insurable interest no longer exists. where will the proceeds from e's life insurance policy be directed to?

Answer 1

Where will the proceeds from E's life insurance policy be directed to? The proceeds will be directed to F because he was the primary beneficiary at the time of E's death. When a life insurance policy is set up, you are able to name one or more people who are able to receive benefits from the policy, because the scenario above does not state anyone else was on the policy we have to assume it was just F. Therefor, F would receive full benefits from the policy.