What happens under a Common Disaster Clause if it's unclear who died first?

Under a Common Disaster Clause, if it is unclear who died first, the typical provision is that the insured is presumed to have survived the beneficiary. This is significant in life insurance policies because it helps to determine the distribution of benefits. In many cases, the intention behind this clause is to prevent a beneficiary from potentially gaining financially from the insured's death in situations where they may have been involved in the circumstances of the death.

This presumption is put in place to maintain the integrity of the policy and to protect the interests of the insured's estate. Consequently, if the insured is considered to have survived the beneficiary, the death benefit will generally be paid out to the contingent beneficiaries or will be included in the insured's estate, rather than going to the primary beneficiary who may have died simultaneously or under dubious circumstances.

In the context of life insurance, this provision ensures that the benefits follow the intended chain of beneficiaries, thereby reducing legal ambiguity while providing financial protection to the insured's estate.