Clause 1 of article 42 of China’s Insurance Law provides that the death benefit shall be deemed as the legacy of the insurant under the circumstances of no designated beneficiary, and the insurer shall perform the obligation of paying death benefit according to the Inheritance Law.This provision confuses the death benefit with legacy, the beneficial right with right of inheritance,and the insurance relation with inheritance relation.The death benefit cannot become the legacy of the insurant,clause 1 of article 42 of the Insurance Law should be amended in accordance with the original attribution of insurance money. The Insurance Law should establish the legal beneficiary system in order to solve the payment problem under the circumstances of no designated beneficiary.