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No. You do not own the policy. You will only receive the policy proceeds after the insured person dies.
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∙ 14y ago
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What if the insured of a life insurance policy does not own an estate?
Normally an insured person on a life insurance policy lists another person as his beneficiary. If that person dies first, then when the insured person dies, it goes to his estate. In that case, the term estate does not refer to a piece of land. Estate refers to all of his property: Bank accounts, Insurance policies, unused IRAs, etc. Some of them may be designated and others not. Whatever he owned when he died is his estate as far as the law is concerned.
Is it ethical for the beneficiary to own a life insurance policy on someone else ie beneficiary is making payments on 18 year old son.?
Sure it is legal. Can't you be the beneficiary of your Dad's life policy and own one on your wife, yourself and your kids too? You could also be the beneficiary of your dad's policy and own it too!
If two children are named as beneficiaries of an insurance policy what do the children do if the surviving parent claims ownership of the policy?
There are 2 primary aspects to the answer to this question: (1) who is/are the beneficiary(ies), and (2) who owns the policy. Each question is significant. 1. When an insurance policy is purchased, the insured generally gets to pick the persons(s) who will be the beneficiary(ies). The beneficiary is the person or entity who or that gets the policy proceeds when the insured dies, assuming that the policy is then in force. The insured, during his/her lifetime usually has the power to change the identity of the beneficiary at any time until death. There is a circumstance called an "irrevocable beneficiary" that may alter this general rule, but it is fairly unusual and will not be discussed here. In a nutshell, it limits the insured's right to change the beneficiary(ies). When the insured dies and the insurer gets notice of death, a death certificate, and a proof of claim, it ordinarily pays the beneficiary(ies) shown on its records as being designated for payment. Assuming here that the two children are the named beneficiaries, the insured may have designated a 50-50 split, or some other division. The insurer usually complies with that designation without question and checks are issued. A third party, such as the surviving parent in this case, could claim entitlement to a share of the policy proceeds. It would be speculation to guess as to the grounds of that claim, but it is possible. If the survivot notifies the insurer of his/her claim, the insurer would conduct its own investigation to determine if the claim had any merit. Normally, barring very unusual circumstances, the named beneficiaries end of being paid, but sometimes not without a fight. 2. When an insurance policy is taken out by an insured, he/she is asked to designate someone as its "owner". Normally, the person who is insured under the policy is also the policy owner, but that is not always the case. Examples include, if someone else is responsible for paying the premiums, or the policy is taken out to protect a third-party's financial interest, such as the repayment of a loan. In those cases, someone other than the named insured may "own" the policy. Part of the significance of being the "owner" of the policy is that the owner has the power to designate or to change beneficiaries. Irrespective of who owns the policy, if the children are designated as beneficiaries as of the time of the insured's death, they should be entitled to the death proceeds. All of that said, undertand that insurance disputes can be extremely complex. Generally, the law of the state in which the policy was issued governs. Therefore, the ultimate result of a dispute over insurance may differ from one state to another.
How is deductible met?
When the insured/beneficiary (patient) pays the total deductible amount out of his own pocket. A deductible is the amount for which the patient is financially responsible before an insurance policy provides payment.
What does deductible and coinsurance mean?
On a health insurance policy, a "deductible" is a specified amount which the insured/beneficiary must pay out of their own pocket, before their insurance will pay any covered medical services. After the deductible amount is met, a "coinsurance" is a percentage amount which the insured/beneficiary is responsible for. For example, if an insurance policy is an "80/20 plan", this means that the insurance company pays 80% of medical services, and the patient (insured) is responsible to pay the remaining 20% (coinsurance).
Can executor own property if he is not beneficiary and beneficiary dies?
No, he cannot own the property. His job is to distribute it according to the will or the state laws for intestacy.
Should each spouse own their own life insurance policy and list each other as beneficiary?
I believe that they should. I always suggest that each spouse get their own policy since many things can happen. It is not that difference in price either. For example, if you divorce than the policy usually lapses and now you are older and maybe have some health or weight issues. So getting a new policy seperately could be way out of your budget. Also, as in a term policy, if the primary insured dies first, than the secondary is forced to have another policy base on their age which could be very expensive. Also, with two separate policies you can have different beneficiaries if that is what you want to do.
Can you insure your home yourself?
you can be self insured but legally it will most likely cost you more than buying a policy. it is not "legal" or illegal to choose a risk management strategy. Likely if you have a mortgage, you will be required to insure the dwelling. If you cannot afford the premium, the mortgage company will at its own cost purchase a policy for you. They will be the beneficiary or "insured" on the policy however. If you own the home outright, you are free to do as you wish. You will see this put into practice for homes along the coast where insurance is very expensive and the homeowners take their chances.............
What is the different between Assured and Insured?
The terms "insured" and "assured" are generally used interchangeably; but strictly speaking, the term "insured" refers to the owner of the property insured or the person whose life is the subject of the contract of insurance, while "assured" refers to the person for whose benefit the insurance is granted.For ex: A wife insures the life of her husband for her own benefit. The wife is the assured, and the husband the insured. The wife is the owner of the policy but she is not the insured.In property insurance, like fire insurance, the insure is also the assured where the proceeds are payable to him.Assured is also used sometimes as a synonym of "beneficiary." The beneficiary is the person designated by the terms of the policy as the one to receive the proceeds of the insurance. He is the third party in a contract of life insurance, whose benefit the policy is issued and to whom the loss is payable.
Can your daughter drive your car if she is not insured on your policy or any policy of her own?
Yes, as long as she has a drivers license. You are the name insured on your policy all other legal drivers are allowed to drive your vehicle as an occasional driver.
Do you need a car to be an insured driver?
Not one of your own-generally you are insured by the owner's policy if you are using someone else's car (with permission)
What is the difference between assured and assurer?
The terms "insured" and "assured" are generally used interchangeably; but strictly speaking, the term "insured" refers to the owner of the property insured or the person whose life is the subject of the contract of insurance, while "assured" refers to the person for whose benefit the insurance is granted.For ex: A wife insures the life of her husband for her own benefit. The wife is the assured, and the husband the insured. The wife is the owner of the policy but she is not the insured.In property insurance, like fire insurance, the insure is also the assured where the proceeds are payable to him.Assured is also used sometimes as a synonym of "beneficiary." The beneficiary is the person designated by the terms of the policy as the one to receive the proceeds of the insurance. He is the third party in a contract of life insurance, whose benefit the policy is issued and to whom the loss is payable.
