When proceeds are distributed 'per stirpes' and a named beneficiary dies before the insured, that beneficiary's share:

Explanation

Per stirpes ('by the branch') distribution sends a deceased beneficiary's share down to that beneficiary's descendants, keeping the money within that family branch. It is not kept by the insurer. Dividing the share among the surviving named beneficiaries describes per capita ('by the head') distribution instead. It does not automatically go to the estate. The per stirpes versus per capita distinction determines whether a deceased beneficiary's line still receives its share.