Eligible Child benefits: what portion of the death benefits does the eligible child receive?

Eligible Child benefits: what portion of the death benefits does the eligible child receive?

• A. All of the death benefits
• B. None
• C. Half of the death benefits, split in equal shares
• D. One-quarter of the death benefits

Answer: (C)

An eligible child provision defines how much of the life insurance death benefit goes to the insured’s children who qualify for that status. The child portion is set at one-half of the death benefit, to be divided equally among all eligible children. The remaining half goes to the other named beneficiaries or the estate, depending on the policy. So, if there are two eligible children, each would receive 25% of the total death benefit; if there is one eligible child, that child receives 50% while the rest goes to other beneficiaries.

An eligible child provision defines how much of the life insurance death benefit goes to the insured’s children who qualify for that status. The child portion is set at one-half of the death benefit, to be divided equally among all eligible children. The remaining half goes to the other named beneficiaries or the estate, depending on the policy. So, if there are two eligible children, each would receive 25% of the total death benefit; if there is one eligible child, that child receives 50% while the rest goes to other beneficiaries.