If a beneficiary is acquitted in a criminal trial for killing the insured, is the payout guaranteed?

• A. Yes, under federal law.
• B. Yes, under state law.
• C. No, acquittal does not guarantee payment.
• D. The insurer must pay after civil action.

Answer: (C)

Criminal acquittal does not automatically determine who receives a life insurance payout. Many policies and state laws apply the slayer rule, which prevents someone who unlawfully caused the insured’s death from collecting the death benefit. Even if the beneficiary is acquitted in criminal court, a civil decision or the policy terms can deny payment to that person and instead pay to the estate or a contingent beneficiary. So the payout is not guaranteed simply because there was an acquittal. The insurer will rely on the policy provisions and applicable law to decide the rightful recipient.