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When making your beneficiary elections on your Affordable Mortgage Protection Insurance application, you can choose to decide how the death benefit proceeds will be disbursed in the event of the death of your beneficiaries by choosing either a per stirpes payout arrangement or a per capita arrangement.
In a per stirpes arrangement, the children or remaining heirs of the deceased beneficiary will be given their portion of the death benefit proceeds by individual family branch to split evenly amongst themselves.
In a per capita arrangement, the children or heirs of all deceased beneficiaries will split the entire percentage of death benefit proceeds allocated to the deceased beneficiaries. This division is not done by branch, which means that all proceeds for deceased beneficiaries are pooled.
Per stirpes can leave some heirs of deceased beneficiaries with a larger portion of death benefit, while per capita makes sure that all the death benefit proceeds allocated toward deceased beneficiaries are split evenly amongst each of their heirs.