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Can I pay my daughters premiums if I am a beneficiary on her life policy?
Wiki User
∙ 14y ago
First of all, there are many unknown variables to properly answer this question. In order to provide an appropriate response, we would need to know more about the situation. Additionally, if you are doing extensive estate planning or financial planning, you should consult a specialist, accountant and attorney in order to get solid advice.
In simple terms:
Yes, you most likely can pay your daughter's premiums even though you are a beneficiary on her policy - assuming that the premiums due on her policy are not any higher than the allotted annual gift tax exemption (around $13-$14,000). Speak with an accountant for details.
There are a few additional things to consider however: Who is the owner of this policy? If either you or your daughter are the owner, then this will not present any problems. The only problem that could occur is if you are the owner and a third person was listed as the beneficiary of the policy. Additionally, if a third person is listed as the owner, it would present a problem.
Deciding on whom to list as a beneficiary on a life insurance policy seems very simple, but in fact can create some unwanted taxable consequences. Few people (licensed agents included), are aware that if the owner, insured and beneficiary of a policy are three different people, the owner will be assumed - upon the insured's death, to have gifted the proceeds to the beneficiary. This is known as the Goodman Rule.
Wiki User
∙ 14y ago
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Who is the owner of a life policy?
The owner of a life insurance policy is the person or corporation who initiated the application. As an owner, you have the obligation of paying the premiums on time and you can also specify and change the beneficiary whenever you want.
My husband had joint life policy with exwife after they divorced he was the only one paying premiums and only his life was insured he died in this year and am i beneficiary of this life policy or exwi?
Um... if he was definatley then only one paying premiums after the divorce, then you should be ritefully incharge of the insurance. Because A she and him were divorced, and B she didn't pay the policy fees. Ur welcome
I took out life insurance on my husband in 1988 we divorced 10 years later. I have been paying it ever since. He has married again. If he dies who will be able to claim on the policy.?
Are you the owner of the policy? If so, you are the only person authorized to change the beneficiary on the policy. If you are not the owner of the policy, your ex-husband can change the life insurance beneficiary regardless of the fact that you have paid the premiums.
If you are not listed as a beneficiary on your fathers life insurance policy are you entitled to anything?
You are entitled to no proceeds from the life policy if the beneficiary or contingent beneficiary is still alive.
Who is the beneficiary for your life insurance?
The beneficiary of a life insurance policy is the person or entity designated by you when you apply for the policy and when it is issued by the insurer.
Can you have a secondary beneficiary on your life insurance?
Yes, you can have a secondary beneficiary on your life insurance policy. If the primary beneficiary is no longer living when you pass away, the secondary beneficiary would receive the proceeds from your life insurance policy.
Can a spouse change there deceased spouses beneficiary name on a life insurance policy?
The owner of the policy can change the beneficiary of the policy. If the original beneficiary has died before the insured, the owner of the policy can designate a new beneficiary at any time.
Can a Will override the beneficiary on a life insurance policy?
No.
Are you a beneficiary of a life insurance policy?
yes
Is there any life insurance that has single digit premiums?
Life insurance premiums vary by policy. There are few that offer single digit premiums.
Who can legally change the beneficiary on a life insurance policy?
The Insured can change the beneficiary on a life insurance contract.
Can a beneficiary on life insurance refuse the responsibility?
It is not a question of refusing responsibility. The beneficiary is the person or institution designated to receive proceeds upon the death of the insured. He/she/it has no obligation to pay future premiums. However, the beneficiary is free to decline the proceeds in which case they will be paid to a contingent beneficiary listed in the policy; in none, the proceeds will be paid to the insured's estate.
