Although not commonly applicable to life claims, a Common Disaster life insurance clause is provided under what is known as the Uniform Simultaneous Death Law, which is adopted by most states to address the problem of protecting the contingent beneficiary in the event that the insured and the primary beneficiary die at the same time, or resulting from the same event.
Under this law, the law will assume that the first beneficiary (primary) died first in a common disaster. The allows the proceeds to be paid to either the secondary (contingent) beneficiary or to the estate of the insured, if no contingent beneficiary has been designated. The intent is to make sure that the final wishes of the insured are fulfilled.
Most insurance companies specify a specific period of time, as 30 or 60 days, that the death must occur within in order to follow this policy provision. What this means is, so long as the beneficiary dies within this time frame following the death of the insured, it will still be interpreted by the law that the beneficiary died first.
The Common Disaster clause of a life insurance policy is very important and is provided under the law by most states. You should read your insurance policy closely to be sure that your state allows this provision.
Comparing life insurance quotes from different companies can mean comparing apples to watermelons. Each company has different clauses, provisions and riders that are used to change both the policy premium as well as, policy benefits.
You should carefully consider policies and quotes from several companies before making a decision. Using a free tool that helps you to do this, kind of like a life insurance quote calculator, helps.