In the case of non-guaranteed contracts, where do excess proceeds from the life insurance policy go?

In non-guaranteed contracts, if a life insurance policy generates excess proceeds, these funds typically go to the estate of the beneficiary or, if applicable, to the State of Missouri in situations where the beneficiary is on public assistance. This outcome is grounded in the principles of estate law and the regulations surrounding public assistance programs. When excess proceeds are not designated for specific purposes or charitable donations, they become part of the deceased’s estate. If the beneficiary received state assistance, the state may have a claim to those excess proceeds to recoup some of the support provided.

The reason this is a vital aspect is that it ensures that beneficiaries on public assistance do not unjustly enrich themselves at the expense of the state. The other options do not align with how excess life insurance proceeds are typically managed under Missouri law, highlighting the importance of understanding the regulatory framework governing life insurance in the context of funeral services and estate distribution.