What Happens To Life Insurance When Both Parents Die? 
What happens when both parents die ? Well it 's going to depend on how much time they spent in planning for such an occurrance . If they planned well , everything will go exactly has they have laid out in their insurance policies and will . If they did nothing and did n't name contingent beneficiaires then those funds go into the estate and are subject to probate . In the simplest ways , naming contingent beneficiaires allows for the funds to escape probate and go directly to the named individuals or entities . If the contingents were still minors the polcies might reference a will where the establishment of a trust happens and the funds go there to be distributed over time . 