What is the difference between per stirpes and per capita beneficiary designations?

Per stirpes and per capita are legal terms that determine how life insurance proceeds are distributed when a named beneficiary predeceases the policyholder and that beneficiary has their own children.

With a per stirpes designation, a deceased beneficiary's share passes down to their children (the policyholder's grandchildren) rather than being redistributed among the surviving beneficiaries. "Per stirpes" is Latin for "by the branch"—the family branch continues to receive the designated share even when the direct beneficiary is gone. For example, if you name three children and one child predeceases you, that child's one-third share passes to their children (your grandchildren) rather than being split between the remaining two children.

With a per capita designation, a deceased beneficiary's share is redistributed among the surviving named beneficiaries. The proceeds are divided equally among those still living at the time of the claim. This keeps the distribution among the same generation but means grandchildren receive nothing if their parent predeceases the policyholder.

Per stirpes is often the more protective choice for policyholders who want proceeds to remain within family lines across generations. It ensures that no branch of the family is inadvertently disinherited when a family member dies before the policyholder.

Not all insurance carriers offer per stirpes designation—and the exact wording matters for how carriers implement it. Agents in our network can identify carriers that offer this option and ensure the designation is documented correctly.