With permanent life insurance, such as whole life or universal life, the proceeds are prorated according to the percentage of premiums paid with "community" money.Say, for instance, a man buys a whole life policy two years before he gets married and one year after his marriage. He uses his own money to pay for the first two years of premiums and income earned after the wedding to pay for the next year, and then dies. In this case, if he names someone else as beneficiary, his wife would have rights to 50 percent of one-third of the death benefit payout, Hicks says.
A spouse's right to life insurance money
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