by Guest » Mon Sep 14, 2009 09:18 pm
My grandmother purchased a policy on me which is paid in full. She died last year. I received a copy of the policy & was shocked, when I found my mother listed as the beneficerary and my step father, "who also was the agent who sold her the policy years ago" listed as the owner. The policy was changed shortly after she passed away. I do not have a good relationship with either. Is this legal? I thought that after she passed I as the insured would have became the owner.
Posted: Mon Nov 02, 2009 08:55 am Post Subject:
If the step father had forged his name, then it's certainly an insurance fraud and he'll face severe charges. But one thing that you'd need to be certain is that your husband had remained as the 'beneficiary' till this late ownership transfer. If your husband's grandmother had changed her mind at any point of time, then that becomes another thing altogether!
Posted: Mon Nov 02, 2009 09:44 am Post Subject:
My Husband is not the beneficiary and has never been. His mother is the beneficiary. That is why he had inquired about the policy in the first place to change the beneficiary because of him having a very poor relationship with his mother and stepfather who he has not spoken to in years. I should also mention that she is under investigation, that she may have known or helped in the crime. There is no doubt my husband was the current owner. That is where his name was forged on the insurance form under current owner. Hope this clears up the situation some.
Posted: Wed Nov 04, 2009 12:14 pm Post Subject: life insurance
As i read this entire thread, actions, like this, make me sick!! It's horrible how your REALLY see how family memebers can be, when it comes to money. It's so sad to see 'Clients' of mine who are taken advantage of by family members. Some of my 'Clients' have Alzhiemers (spelling?) and don't know WHAT they are signing...even if the family memeber swears they are of 'sound mind'. I understand the thread is another situation, however, I think it's the same 'concept'.
Posted: Wed Nov 04, 2009 11:48 pm Post Subject:
It is a shame. People get so GREEDY! It is Sick! Just to keep everyone up to speed there was a loan taken out agianst the policy weeks after it was changed. They have not made one payment back. We think God that we found out about this now or there would have been a big surprise in the event of his death. If the interest would have exceeded the cash value, the policy would have terminated.
Posted: Wed May 23, 2012 11:45 pm Post Subject:
Posted: Wed May 23, 2012 11:45 pm Post Subject:
I actually had the same thing happen to me with my stepmother. My father passed away and everything was left to her in the will. This would include the life insurance policy my father had on me. She refuses to give it to me so I can pass it along to my daughter if anything ever happens to me. I cannot believe someone would have the right to have a life insurance policy out on someone(especially an adult) that is not related to. I sincerely believe it is unethical to benefit monetarily from someone's death. Especially not even a relative. If anyone has a solution as to how I can change this law or regulation, let me know. Thanks!
Posted: Thu May 24, 2012 01:50 pm Post Subject:
Bee, you don't think that it should be legal for your father's wishes to be followed? If he wanted you to become owner of the life insurance policy, he could have left it for you.
Posted: Thu May 24, 2012 11:30 pm Post Subject:
If he wanted you to become owner of the life insurance policy, he could have left it for you
It may not be a matter for dear dead dad. The contract will tell everyone who/what becomes the owner following the death of an owner who is not the insured. It could be the estate, in which case dad could choose stepmom as the new owner through his will/trust, or it could be the insured, in which case stepmom could not be the owner.
You'll have to read the contract or contact the insurance company to find out.
Posted: Fri May 25, 2012 01:32 pm Post Subject:
You are correct that the contract will determine what happens, but it is still a matter for dear dead dad.
The contract most likely is going to have the new owner become the insured or the estate of Dad. If it is the insured, the daughter would get it. If it is the estate, Dad gets to choose via his will who gets it.
Neither you nor I have ever seen a contract in which ownership automatically goes to the spouse of the owner. Therefore, the step mom only would end up with the contract because Dad didn't choose for his daughter to get it.
Posted: Fri May 25, 2012 05:27 pm Post Subject:
The contract most likely is going to have the new owner become the insured
I think you got the word order mixed up. The new owner would not "become" the insured. (Should have read: The insured would become the new owner.)
Neither you nor I have ever seen a contract in which ownership automatically goes to the spouse of the owner.
That's correct, and I did not say anything like that. Dad could have left instructions in his will (or trust) to give ownership to stepmom if that matter was one for probate . . . or not.
We also know that the probate court is not bound by law to honor anything stated in a will . . . it's possible that the OP failed to attend a probate hearing to stick up for herself and the ownership of the policy on her life, and the court was left to make its own decision in the matter.
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