Home Life insurance Life insurance basics What are per capita and per stirpes life insurance beneficiaries? What are per capita and per stirpes life insurance beneficiaries? A per capita death benefit splits the life insurance funds equally to all beneficiaries, while a per stirpes benefit pays to a beneficiary’s heirs if the beneficiary dies. Written by: Huma Naeem | Reviewed by: Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. | Posted on May 11, 2023 Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. When you buy a life insurance policy, you’ll have to designate beneficiaries to receive the death benefit. If you have two beneficiaries, they’ll each receive 50% of the death benefit. And if you have four beneficiaries, they’ll each receive 25%. This is called a per capita death benefit. If one of your beneficiaries dies before the death benefit is paid out, the remaining beneficiaries will split their share of the death benefit. But if you want to ensure the death benefit protects the deceased beneficiary’s family, you’ll need to designate your beneficiaries as per stirpes. Read on to learn more about the two types of death benefit designations and which one is right for you. What is a per capita death benefit? Per capita is the default method for life insurance policies to be distributed. Meaning “by head” in Latin, the death benefit will be divided equally among all of your beneficiaries. For example, if you have a life insurance policy with a death benefit of $500,000 and three people listed as your beneficiaries, your death benefit would be divided equally among them, each receiving $166,666. If one beneficiary has passed away, their share will be divided among the remaining beneficiaries. You do not need to designate a per capita death benefit in your policy — it is automatic. What is a per stirpes death benefit? Per stirpes means “by branch” in Latin. With this designation, the death benefit will be divided among your beneficiaries according to their family branch. For example, if one of your beneficiaries has passed away, their share will be divided among their children rather than the remaining beneficiaries. This ensures that the deceased beneficiary’s share of the death benefit goes to their family, rather than being divided among the surviving beneficiaries. For example, if you have two children, and each child has two children of their own, you’ll likely list your children as the beneficiaries on your life insurance policy. If you indicate in your policy that this will be a per stirpes distribution and one of your children passes away, their share of the death benefit would be divided equally among their own two children, rather than split between the remaining beneficiaries. Should you choose per capita or per stirpes? The distribution method you choose for your life insurance policy depends on your family situation. Here are a few factors to consider: If you have a small number of beneficiaries and want to divide your death benefit equally among them, per capita is the best option for you. If you have many beneficiaries or want to ensure your death benefit goes to your beneficiaries’ heirs, per stirpes is a better option. If you want to ensure that your death benefit goes to specific people, rather than being divided equally among all of your beneficiaries, you can name them as primary beneficiaries and use a per stirpes distribution. QuickTake What is a life insurance beneficiary? 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Ultimately, the death benefit distribution method you choose should reflect how you want the death benefit to be distributed to your loved ones. Reviewing your beneficiary designations regularly is important to ensure they reflect your wishes and your family situation. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Related Articles What is demutualization and what does it mean for policyholders? By Laine Adley Life insurance riders: What they are and how they work By Laine Adley What is a life insurance beneficiary? 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