Under the Common Disaster provision, what happens to the proceeds from an Accidental Death and Dismemberment insurance policy when the insured dies before the beneficiary?

Under the Common Disaster provision, if the insured dies in an accident and the beneficiary predeceases the insured, the proceeds from an Accidental Death and Dismemberment insurance policy will be paid to the insured's estate. This provision is designed to address situations where both the insured and the beneficiary die in a common accident, preventing the beneficiary from receiving the death benefits if they have already passed away.

The rationale for this arrangement is to ensure that the benefits do not become unclaimed or go to someone other than the insured's intended heirs. Instead, the proceeds are directed to the estate, allowing the funds to be distributed according to the deceased insured's will or the laws of intestacy if there is no will.

This mechanism ensures that there is a clear legal pathway for the handling of insurance proceeds in the event of a tragic scenario where both parties are involved in the same incident, maintaining order and clarity in the distribution of assets.