What does Common Disaster Clause mean? Read on to discover the definition & meaning of the term Common Disaster Clause - to help you better understand the language used in insurance policies.
Common Disaster Clause
Provision in most life insurance policies (and some wills) under which the primary beneficiary of the policy (or will) must survive the insured (or testator) by a certain number (usually from 60 to 90) days to qualify to receive the policy's (or will's) benefits. Otherwise the benefits will be paid to the insured's (the testator's) estate as if the primary beneficiary died before the insured (testator). Also called survivorship clause.
We hope the you have a better understanding of the meaning of Common Disaster Clause.