June 03, 2017



| Your comment matters, please click here to rate article!

When Someone Dies, Does Their Life Insurance Payout Become Part of Their Estate?

Question: If someone has chosen a beneficiary for their life insurance policy, does the insurance payout become part of the inheritance after the death of that person or is it only given to the beneficiary?

Answer: To answer your question, I need to refer to Civil Transaction Law 5 of 1985 and its amendments, as this law governs the relationship between the insurance company and beneficiary. Article 1050 of the law states that: "1. The insured may provide that the sum assured be paid to persons specified in the contract or to be nominated at a later date. 2. If the insurance is made for the benefit of the spouse of the insured, his sons, descendants or his heirs, the sum insured shall be due to those who effectively have these qualifications at the death of the insured. Should the heirs be the beneficiaries, the sum assured shall be divided upon them in accordance with their legal shares in the estate." Also, article 1055 of the same law states: "Amounts agreed to be paid upon death of the insured shall not be included in his estate." So, the heirs of the person could share the insurance policy payout only if all of them are named as beneficiaries. If only one of the heirs are named as the beneficiary, he/she is entitled to take the whole amount, regardless of the application of the rights of other inheritors. Confirming the above point of view is Supreme Court orders that state the beneficiary as the person to whom the amount of the insurance will be transferred after the death. The effect of identifying the beneficiary is that the beneficiary would receive the money directly, without the sum having to go to the monetary account of the insured. The identification of the beneficiary is subject to the court's discretionary power.

Related Links


No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.

Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Contact Me

I Agree to Terms and Conditions
Please check this box if you want to proceed.

Select your Language:


Main Menu