If the named insured under a policy dies, what happens to the coverage?

When the named insured under a policy passes away, the coverage does not automatically terminate. Instead, the policy typically continues to provide insurance to the legal representative of the deceased's estate. This is an important aspect of insurance policies, as it ensures that any outstanding claims or liabilities can be addressed, and that there is continuity of coverage during the transition period following the named insured's death.

The legal representative, often an executor or administrator of the estate, assumes responsibilities regarding the handling of any remaining insurance needs. This provision also helps in protecting the assets of the estate as the legal representative can manage any claims or activities that involve the insurance policy.

Thus, the correct answer reflects the continuity and protective nature of insurance policies, assuring that issues concerning the estate can still be handled despite the death of the insured. This understanding reinforces how policies are designed not to abruptly cease coverage during significant life changes.