What is the slayer rule?

This rule keeps someone who murders you — or is suspected of plotting to murder you — from collecting on your life insurance.

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Nupur GambhirSenior Editor & Licensed Life Insurance ExpertNupur Gambhir is a licensed life, health, and disability insurance expert and a former senior editor at Policygenius. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service Cake.&Tory CrowleyAssociate Editor & Licensed Life Insurance AgentTory Crowley is an associate editor and a former licensed insurance agent at Policygenius. Previously, she worked directly with clients at Policygenius, advising nearly 3,000 of them on life insurance options. She has also worked at the Daily News and various nonprofit organizations.

Edited by

Julia KaganJulia KaganContributing EditorJulia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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We’ve all seen the classic whodunnit with a $1 million life insurance payout as the motive and the beneficiary as the prime suspect. Life insurance policies have been a plot point in countless thrillers, true crime shows, and even a Taylor Swift song. 

But real life isn’t a true crime show. Slayer rules, also known as slayer statutes, keep anyone from benefiting from your life insurance policy if they’re even suspected of murdering or plotting to murder you. Here’s how the slayer rule works and when it does make sense for someone to own life insurance coverage on you.

What is the slayer rule?

Slayer statutes prohibit anyone from inheriting from the estate of someone they murdered (or conspired to murder), including that person’s life insurance payout. If your beneficiary can’t receive the death benefit because they planned to kill you, the insurance proceeds go to your other beneficiaries or your estate

A conviction isn’t necessary for the slayer rule to apply. Insurers can refuse to pay the death benefit as long as there is a preponderance of evidence that the beneficiary committed the crime. [1] Even if they’re acquitted in the trial, they can still be barred from getting the life insurance money.

The specifics of slayer statutes differ depending on your state’s laws. For example, in some states insurers can also deny the death benefit if there’s a suspicion that a beneficiary “financially exploited” the policyholder or abused them. [2]

When can someone take a life insurance policy out on you?

If someone wants to take a life insurance policy out on you, there isn’t an immediate cause for alarm. Hopefully, incorporating a life insurance policy into your financial strategy is a conversation you’ve already had.

It’s common to own a policy on someone if their death would have negative financial consequences for you. Here are some situations when the need might arise:

  • Business partnerships: If you own a business with someone, your death would affect the company. Partners often buy key person insurance on each other to cover potential business losses or the cost of hiring a replacement.

  • Co-signed loans: Life insurance protects parents or a spouse who co-signed your private student loans or a mortgage from becoming liable for the payments if you die before paying them off.

  • Caring for loved ones: If you help care for family members, such as elderly parents, a policy allows a sibling who shares that responsibility to replace your financial support or pay for new at-home care.

In each situation above, you could own your own policy and name your business partner or family member as a beneficiary, but it’s not uncommon for these individuals to own a policy on you instead. 

Life insurance companies protect you from being insured without your knowledge by requiring you to sign the policy and go through underwriting. No one can take out a policy on you without your consent without committing life insurance fraud.

→ Learn more about how life insurance underwriting works 

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What happens if one beneficiary can’t receive the death benefit?

Whether a beneficiary can’t accept the life insurance proceeds because of the slayer rule or for other reasons, the death benefit will pass to your other beneficiaries or your estate.

If any of your primary beneficiaries is unable to claim the death benefit, their designated portion of the payout will be divided among the other primary beneficiaries that you name. 

You can also set up contingent beneficiaries, who receive the death benefit if none of your primary beneficiaries can accept it. If both your primary and contingent beneficiaries can’t accept the payout, it will go to your estate and a court will decide who receives the funds.

To make sure that their family is adequately protected, some people set up a per stirpes vs. per capita death benefit. This protects your beneficiaries’ heirs if the beneficiary cannot accept the death benefit — for example, if the beneficiary predeceases you.

When should you update your life insurance beneficiaries?

You can update your beneficiaries at any time. Except in rare circumstances, the policy owner is the only person who can change your beneficiaries. It’s a good idea to sit down every year or two and make sure your policy matches your current needs.

You should also review your policy with every big life change, such as getting married, having kids, going through divorce, or if a beneficiary predeceases you. It’s as simple as updating your beneficiary designation in your insurance company’s online portal or calling your insurer.

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Hollywood thrillers might make you feel like buying a life insurance policy puts a target on your back. But for most families, it’s a critical piece of financial protection for the people whom you love and trust.

Frequently asked questions

How does the slayer rule work?

Also known as the slayer statute, this rule prohibits your beneficiary from getting the death benefit if they are suspected of murdering (or trying to murder) you. The slayer rule is meant to disincentivize people from murdering someone to claim their life insurance death benefit. 

What happens if the slayer statute is applied to your policy?

If your beneficiary kills you, the life insurance payout goes to your other primary beneficiaries, your contingent beneficiaries, or your estate.

Where do slayer rules apply?

Each U.S. state has its own slayer statute. Some are more lenient and permit insanity pleas, while others are more stringent and won’t even pay out to the beneficiary in question if there are signs of past abuse.

References

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  1. Legal Information Institute

    (LII). "

    preponderance of the evidence

    ." Accessed June 16, 2023.

  2. The Journal of the American Academy of Psychiatry and the Law

    (JAAPL). "

    Expanding Slayer Statutes to Elder Abuse

    ." Accessed June 16, 2023.

Authors

Nupur Gambhir is a licensed life, health, and disability insurance expert and a former senior editor at Policygenius. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service Cake.

Tory Crowley is an associate editor and a former licensed insurance agent at Policygenius. Previously, she worked directly with clients at Policygenius, advising nearly 3,000 of them on life insurance options. She has also worked at the Daily News and various nonprofit organizations.

Editor

Julia Kagan is a contributing editor at Policygenius, where she specializes in life insurance. Previously, Julia was the senior personal finance editor at Investopedia for nearly a decade, a vice president and editorial director at Consumer Reports, the editor of Psychology Today, and the vice president of content at Zagat Surveys.

Expert reviewer

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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