What does "per stirpes" mean on a life insurance beneficiary designation?

"Per stirpes" is a Latin legal term meaning "by branch" — it is a method of distributing a life insurance death benefit (or estate asset) that ensures descendants of a deceased beneficiary inherit their ancestor's share.

Here is how it works: suppose you name your two children equally as beneficiaries per stirpes. If one child predeceases you, that child's share passes to their children (your grandchildren) — not to the surviving sibling. The "branch" of the family tree represented by the deceased child continues to inherit.

Contrast with per capita: a "per capita" designation (equal shares among surviving beneficiaries) would give the surviving sibling the entire benefit if one sibling predeceases you. Per capita is simpler but may not reflect your intent for multi-generational distribution.

When to use per stirpes: it is appropriate when you want benefits to flow down your family tree according to the relationships — ensuring grandchildren receive what would have been their parent's share if the parent predeceases you. It creates automatic multi-generational distribution without requiring beneficiary designation updates at every death.

Nevada policyholders with children who have their own children (grandchildren who might inherit) should consider whether per stirpes or per capita better reflects their intent. Many carriers allow both designations — specify which applies when naming beneficiaries. Agents in our network can explain how specific carrier forms implement these designations.