My father recently passed away. He listed my sister and myself as beneficiaries. The insurance company paid the proceeds of the policy to my sister because she was listed first. Almost all contracts either number or provide notations regarding beneficiary designations which may be used to determine to whom benefits should be paid. If the beneficiaries are not numbered, and there are no other indicators of how benefits should be paid, then the courts should determine the order of beneficiary designation.
Unpaid interest is added to the loan balance.
If the loan balance ever grows to exceed the amount of policy cash value, the contract will terminate without value. Also, if you should die before paying back any loans made against the cash value of your policy, the outstanding loan balance will be subtracted from the death proceeds. In order to purchase a life insurance policy on anyone, there must be an insurable interest. A relative who might suffer financial loss if you died, a debtor who may be at risk of repayment, a business partner, a spouse, son, daughter or parent are examples of those who would have an insurable interest. I have had a life insurance policy on my son since birth.