by Guest » Wed Jan 29, 2014 04:38 pm
My Dad called his company and changed his beneficiary of his life insurance on the phone, and they said he would have to fill out a change form. He did this and signed it, but the Contingency did not equal the right total. In other words, he had one that was 100% and and then another that was 100% and then the other two were 50% and 50%. They said it was wrong and should have had his contingencies at 33.3% times 3. Can they do this? They sent it back and say it is not valid and referred back to old one when he died.
Posted: Fri Jan 31, 2014 12:41 pm Post Subject: Beneficary percentages
All classes of beneficiary designations have to equal 100%
Example:
PRIMARY beneficiary, Wife, 100%
CONTINGENT beneficiary(s)
Child #1) 33.34%
Child #2) 33.33%
Child #3) 33.33%
Total for each class = 100%
I don't believe the insurance company was demanding any specific percentage only that the sum total has to be 100% for each class.
Posted: Thu Feb 06, 2014 02:34 pm Post Subject:
GARY! Welcome back! Hope you are doing well!
Posted: Thu Feb 06, 2014 11:21 pm Post Subject:
Thanks Max!
I'm doing fine.
Posted: Fri Feb 14, 2014 10:33 pm Post Subject:
Yes they can do that and I agree with what they did. The company had no choice but to go back to the original beneficiary because the last request was not clear. Sorry to hear about your father passing.
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