4.6.1 Per Capita Method
Per capita refers to the method in which policy proceeds are dispersed equally to each beneficiary named in the policy. The per capita rule states that death proceeds from an insurance policy are divided equally among the living primary beneficiaries.
Diana has a $150,000 life insurance policy and has named her three children, Joan, Mike, and Robert, as equal beneficiaries. If Diana were to die, the policy's death benefit would be disbursed according to the Per Capita Rule as long as all three beneficiaries were still living at the time of payout as illustrated in flowchart #1.
