What does the Common Disaster clause provide if both the insured and sole named beneficiary die in a common accident?

The Common Disaster clause is designed to address the situation where the insured and the sole named beneficiary die together in a common accident, such as a plane crash or similar event. This clause often specifies how benefits are distributed in such tragic circumstances to avoid delays and ensure clarity regarding the distribution of benefits.

When the insured and the named beneficiary die simultaneously, the proceeds from the life insurance policy typically go to the insured's estate. This approach is established to prevent any potential issues related to the timing of death. It assumes that if the beneficiary dies at the same time as the insured, they cannot inherit from the policy since they would not survive the insured. Thus, the proceeds are redirected to the insured's estate, allowing for proper probate handling and distribution according to the state's laws or the decedent's will.

The other options do not accurately reflect the intentions behind the Common Disaster clause. For instance, proceeding to the beneficiary's family could lead to complications regarding the timing of deaths and who is entitled to the funds. Similarly, options that involve no payment or forfeiture to the insurer do not align with the purpose of having such a clause in the policy, which is to ensure that benefits are paid out even in unusual circumstances.