Primerica Life Producer Exam Practice Test 2026 – Complete Prep Resource

When a whole life policy names a beneficiary, the insurance proceeds are directed to that individual upon the insured's death. If the named beneficiary, in this case, the wife, passes away before the insured man and he does not update the beneficiary designation, the proceeds of the policy will then go to the insured’s estate. This occurs because the previously designated beneficiary is no longer living to claim the benefits, and without an alternate beneficiary having been named, the default legal arrangement is for the funds to be handled as part of the estate.

In this circumstance, the policy proceeds could be subject to probate and would be distributed according to the deceased's will or, in the absence of a will, according to the state’s laws of intestacy. This ensures that the deceased's financial assets, including the life insurance benefit, are managed and distributed in compliance with legal requirements.