Question

Muna, as executor, is trying to settle her brother's estate. Hamid, her brother, had filed a beneficiary designation with the insurance company, naming their parents as the beneficiary of his life insurance policy. However, in his will, he named their sister, Ali, as the beneficiary. Who will the insurance company pay the benefits to?

a) Ali, who is named in the will.
b) Hamid's parents, the named beneficiaries.
c) The estate, as there is a dispute.
d) Muna, as the executor.

Answer 1

The insurance company will pay the benefits to the named beneficiaries, Hamid's parents.

Step-by-step explanation:

The insurance company will pay the benefits to the

named beneficiaries, Hamid's parents.

Even though Ali is named as the beneficiary in the will, the insurance company is legally bound to follow the beneficiary designation that Hamid filed with them. This means that the parents, who are the named beneficiaries, are entitled to receive the benefits.