§1950 Payment to estates

Summary

If no one is named to get the insurance, or the person named does not outlive the insured, the insured’s estate gets a lump sum equal to the current cash value of the remaining unpaid monthly payments. If a named beneficiary lives longer than the insured but dies before getting all payments, that beneficiary’s estate gets the same lump sum for the unpaid payments. If state law would make the estate go to the state instead, the money goes to the United States and is added to the United States Government Life Insurance Fund.