If there were no eligible spouse, the pension benefit will become payable to which party?

• A. The spouse
• B. The estate
• C. The life insured
• D. The named beneficiary

Answer: (D)

When a pension benefit is paid on death, who gets it is determined by the beneficiary designation in the contract. If there is no eligible spouse to receive the survivor benefit, the plan will direct the payment to the person or entity named as the beneficiary. This keeps the funds out of the estate and ensures the chosen recipient receives the benefit directly according to the agreement. The life insured cannot receive their own death benefit, and the estate would typically come into play only if there is no named beneficiary at all or if all designated beneficiaries predeceased with no alternate designation. So, the benefit goes to the named beneficiary as specified in the plan documents.