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Insurance

Common disaster clause

Life insurance policies often include a clause known as the "common disaster provision". This provision specifies what will happen to the life insurance proceeds if the named beneficiaries were to pass away in the same accident. In such cases, the proceeds would typically be distributed among the remaining living beneficiaries or to the estate of the deceased. It is important to understand this provision when selecting beneficiaries and ensuring that your loved ones are taken care of in the event of a tragedy.
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