What does the term "Per Stripes" refer to in beneficiary designations?

The term "Per Stripes" in beneficiary designations specifically refers to the way benefits are distributed when a beneficiary predeceases the main policyholder or account holder. Under this designation, if a named beneficiary dies before the policyholder, that beneficiary’s share of the benefits does not simply go to the remaining living beneficiaries. Instead, it passes down to the deceased beneficiary's heirs. This ensures that the deceased beneficiary's estate receives their intended portion, rather than having that portion reallocated among the surviving beneficiaries.

This approach can be particularly useful in family settings where it is important to ensure that the intended family lineage continues to receive benefits, even if an intermediary beneficiary is no longer living. Thus, it reflects a deeper familial connection in the distribution of benefits, preserving inheritance through descendant lines while still maintaining the intentions of the original policyholder.