4.6.2 Per Stirpes Method
The per stirpes method is used to divide policy proceeds equally among the children of a deceased beneficiary. Typically, the per stirpes method is used when grandparents want their grandchildren to inherit what their children would have inherited if their children had survived.
The per stirpes rule states that death proceeds from an insurance policy are divided equally among the named beneficiaries. If a named beneficiary is deceased, his or her share then goes to the living descendants of that individual.
But what happens if one of Diana's children had already died? Then, upon Diana's death, the policy's death benefit would be disbursed as shown in flowchart #2.
