What happens when the policy when the owner dies but the insured is still alive? Who will then have ownership?
Total Comments: 2
Posted: Sun Jan 13, 2013 04:07 am Post Subject:
You will have to read the contract to know. There will be a section labeled "Policyowner" or simply "Owner".
Many contracts transfer ownership in a situation like this to the estate of the deceased policyowner, which can certainly complicate matters astronomically. Some contracts transfer ownership to the insured.
Without seeing the contract, there is no way to tell you which applies in your situation.
Posted: Mon Jan 14, 2013 10:10 am Post Subject:
The policy will remain in force, since the insured is alive. There might be a provision of a contingent owner. In that case, the named contingent owner becomes the new policy owner.
If there is no contingent owner, the policy becomes a part of the deceased's estate (as it has been pointed out). It might either be distributed according to the will of the deceased owner.
Or if he didn't leave a will, the rules of intestate succession will apply and it might necessitate the surrender of the policy in return for the cash value.
Posted: Sun Jan 13, 2013 04:07 am Post Subject:
You will have to read the contract to know. There will be a section labeled "Policyowner" or simply "Owner".
Many contracts transfer ownership in a situation like this to the estate of the deceased policyowner, which can certainly complicate matters astronomically. Some contracts transfer ownership to the insured.
Without seeing the contract, there is no way to tell you which applies in your situation.
Posted: Mon Jan 14, 2013 10:10 am Post Subject:
The policy will remain in force, since the insured is alive. There might be a provision of a contingent owner. In that case, the named contingent owner becomes the new policy owner.
If there is no contingent owner, the policy becomes a part of the deceased's estate (as it has been pointed out). It might either be distributed according to the will of the deceased owner.
Or if he didn't leave a will, the rules of intestate succession will apply and it might necessitate the surrender of the policy in return for the cash value.
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