What does "per capita" mean in the context of beneficiary distribution?

In the context of beneficiary distribution, "per capita" refers to the method by which benefits are divided equally among living beneficiaries. This means that if the policyholder has multiple beneficiaries named and one of them passes away before the policyholder, the deceased beneficiary's share does not get passed on to their heirs. Instead, the remaining living beneficiaries would receive an equal division of the total benefit. For instance, if three beneficiaries are named and one passes away, the remaining two would each receive half of the policy amount, rather than the deceased beneficiary's share being inherited by their descendants.

This distinctive approach ensures that only those who are alive at the time of distribution receive the benefits, creating a fair and equitable process reflective of the policyholder's intent. The other answer choices highlight different methods or principles of beneficiary distribution but do not capture the specific meaning of "per capita" in this context.