Well, in practice, I hope you see the problem with this arrangement: by the time it matters who the beneficiary is, the insured is dead. This presents a conundrum.
Legally, any property of the deceased ... including, I suppose, life insurance benefits ... would become the property of the deceased's estate, and that would be distributed according to the will and/or relevant law. So it's not an insurmountable problem.
It is more often best that the beneficiary be someone other than the insured. Whenever possible, it is best to keep assets out of your estate.
Life Insurance is the same thing as Death Insurance, If you are insured, and you die, your beneficiary receives the proceeds of the life policy.
In Canada, if there is no beneficiary of the life insurance policy, the proceeds go into the estate of the owner. This person is often the same as the life insured but doesn't have to be (eg a father buying life insurance on his son. The father is the owner and the son is the life insured). The proceeds form part of the owner's estate and are distributed according to the instructions in the will after all debts have been satisfied.
Only the POLICY OWNER can change the beneficiary on a life insurance policy. In most cases, the insured is also the policy owner, but it's not a general rule. The policy owner can be another person who is paying the premium (for example, a parent or guardian, spouse or other family member), or a bank, or a business. If the policy owner is not the same person as the insured, then the insured has no control over who the beneficiary is on the policy.
Yes, the policy owner can change the beneficiary. Sometimes, the person insured and the policy owner are not the same person, if someone else pays the premium for the insurance policy. For example, a parent or guardian taking an insurance policy on spouse or children. Some insurance policies are assigned to cover bank loans, and even if the insured may pay the premium, the bank can be assigned as the owner of the policy; in that case the bank decides who the beneficiary is going to be (usually in this scenario, the bank will also be the beneficiary).
If the beneficiary of a policy has died, the estate of the beneficiary can still collect the insurance payment, assuming that the beneficiary does have an heir or heirs of some kind (as most people do). Note that this is a fairly unusual situation, because normally when a beneficiary dies, a new beneficiary is named. There is no reason to allow the policy to have no living beneficiary, unless the insured and the beneficiary happen to die at about the same time, and there is no time to name a new beneficiary.
It is totally illegal to have two insurance policies against same contract and same beneficiary. This is a serious contravention of law and in case any claim arises, the insured's claim will be summarily rejected and will be liable for explanation for such misrepresentation of facts.
If there is a policy on your life the person currently listed as the beneficiary will be paid upon your death. The person listed as the owner of the policy is the only one who has the right to change the beneficiary. Usually the owner and insured are the same person but not always. You may wish to check on this and change the beneficiary if your situation has changed.
Actually the odds could be 100% if the woman's husband owned three different life insurance policies naming her as the primary beneficiary for each of the policies. Or, perhaps her parents each owned life insurance policies, as well, and named her as the primary beneficiary.
Only the owner of the policy can change the beneficiary of a life insurance policy or make any other changes to the policy. Most of the time the owner and person insured is the same person but not always. The owner is usually the one who paid the premiums. If you are the owner, changing the beneficiary is a simple completion of a change form. Most insurance companies have a change form that has places for several different types of changes on one sheet of paper. After the change in beneficiary is processed the company will send you a certified copy to place in your policy.
No state law will require whom the beneficiary is on a life insurance policy. This is up to the owner of the policy. it may be changed by the owner of the policy if they choose to do so as well. Remember that the owner and the insured is usually the same person but they don't have to be. Such as with a minor child. A parent would want to be the owner of the policy while the child is the insured. This is the same with any policy. The owner has ultimate control over the policy and is the only one who can make changes or cancel the policy. The insured has no say after the policy is issued to do anything with it.
== == Do you know what companies they were insured with? All you need to do is call the agent or the insurance co claims department and start the process. Of course in order for you to collect you would have had to of been named the beneficiary. You will need the death certificate. It's that simple. Here's basically the same information from the Insurance Institute of America http://www.iii.org/individuals/life/help/fileaclaim/
No. Life insurance benefits are not eligable for taxation unless the insured passed away without assigning a beneficiary. In this situation the benefits are paid into the deceased's estate and are subject to any back taxes or child support owed by the deceased, or the would be inheritor. Cash value is not the same as an insurance benefit and may be taxable in some situations. Group (employment) insurance has no cash value.
Sure it can, provided the court has sufficient proof to esablish doing so would be in everyone, particularly the children's best interest. This might be possible, but if so it's done very, very rarely. I have never heard of it. A court might pressure the policy owner to change the beneficiary, but I don't believe they can force them to, or arbitrarily change it.
In any life insurance policy, though there is provision for appointment of nominee, on maturity the proceeds will be payable to the policy holder if he/she is alive. By this way, the owner of the policy and the beneficiary is the same person.
There is no difference, fdic stands for federal deposit insurance corporation, which is exactly the same insurance from the same people and the same place.
With most insurance policies, you are asked to list both primary and secondary beneficiary(ies). If your primary beneficiary(ies) dies or cannot be located, benefits are paid to your secondary beneficiary(ies) in the same manner. If there are no such beneficiaries, then typically it defaults to a widow or widower; then to a child or children; next to parents; to the executor or administrator of your estate; and finally next of kin as determined under the laws of the State where you lived. Some form of court proceedings will probably take place. It is important that you keep your designated beneficiaries' addresses current. Failure to do so could mean that your beneficiary cannot be located and therefore benefits will not be paid to that person.
Life insurance is more properly called "death insurance", because payment is triggered upon the death of the person insured if the death is from a cause that is not excluded by the policy. Payment is made to the beneficiary named in the policy. If no beneficiary is named, or if that person is deceased and there is no contingent beneficiary named, proceeds are paid to the estate of the person insured under the policy. There are 2 primary types of life insurance: term and whole life. Term insurance is considered to be "pure protection" in that there is no savings element. As such, it is less costly than whole life. It is purchased in a stated amount (for example, $50,000), and for a stated period of time (for example, 20 years). There are variations as to whether the premium remains the same for the entire term, or increases over the term. Proceeds are payable if the insured dies while the policy is in force. If he/she does not, nothing is paid and no value has accumulated. Whole life insurance has a savings element. This means that some of the premium pays for the protection, and some goes into somethink akin to a savings account. The value of the latter accumulates slowly at first, but the rate picks up as the policy remains in force. Often, the insured is given options as to how to apply the savings element, such as into a selection of mutual funds. In both types of insurance, the insured may be able to discuss additional options, for an additional premium. A couple of these include: (1) a guaranteed insurability option, whereby the insured is given the right to buy additional insurance at certain points in time without regard to then-current health; (2) waiver of premium, which forgives the payment of future premiums if the insured becomes disabled according to definitions in the policy. There are others. Most insurers sell insurance through agents or brokers, who often advertise their services. It is critical for the consumer to ensure that the agent or broker is licensed to sell life insurance in the state. This can be done by contacting the state insurance regulator. It is also important to determine if the agent or broker is authorized ("appointed") by the insurer to sell its products. This can be determined through the state insurance regulator as well.
Life insurance is often purchased on the advice of an attorney when writing your will and planning your estate. When you purchase a life insurance policy, you need to name someone as the beneficiary of the policy in the event of your death. The beneficiary of a life insurance policy is the person who receives the insurance money after the death of the insured person. Anyone can be named as the primary beneficiary of your life insurance policy. In most cases, the person you choose will be your spouse. If you live in a community property state, laws in those states require you to name your spouse as beneficiary unless he or she has given you written permission to name someone else. You can also name a contingent beneficiary that would receive the proceeds of your life insurance if your primary beneficiary is deceased. You can also name two or more people as your primary beneficiaries. For example, if you have no spouse or children, you may choose two siblings to share the proceeds of the policy. In this case, specify the percentage of the proceeds that each sibling gets, i.e. fifty percent each, instead of an exact dollar figure. If you have minor children, your main reason for purchasing a life insurance policy may be to provide for their care until they reach adulthood. You and your spouse need to name a guardian for your children in your will, especially in the event that you both die at the same time. The beneficiary of your life insurance policy in this case could be the named guardian or a trust fund set up to hold the policy benefits. If you are a single parent, these decisions are critical to your children's future. You should avoid naming your estate as beneficiary since all assets in your estate must be distributed to the appropriate heirs by a probate court. Probate court proceedings can significantly delay payment of benefits to your loved ones. If a specific person has been named as the beneficiary, the proceeds are paid directly to that person and are not subject to the probate court. After you are satisfied with your beneficiary designation, you should periodically review your estate plan and will. You can easily revise the beneficiary to your life insurance policy when changes occur in your life.
Absolutely not. Just because one receives the benefits of a life insurance policy does not make them responsible for the debts of the one that has passed away. The person receives the benefit tax free to spend how they see fit. That said, whole life policies accumulate cash value. This is essentially a savings account within the policy. The insured, prior to death, can borrow some or all of the cash value by means of a policy loan. If it is not repaid, the death benefit payable to the beneficiary would be reduced by the outstanding amount of the loan plus the contract rate of interest. This is technically different from the beneficiary being responsible for the general debts of the deceased, but the outstanding policy loan would reduce the amount payable to the beneficiary. Therefore, indirectly, the beneficiary is bearing responsibility for this debt. The lack of responsibility for the deceased's debts is the same if term insurance is involved. Term insurance does not accumulate cash value, so no policy loans can be made. However, a life insurance policy can sometimes be used as collateral for a loan. If the insured dies before the loan is paid, the creditor may make a claim to the policy proceeds, which may or may not be given preference over the claim of the named beneficiary.
The named beneficiary in a life insurance policy is presumptively the correct recipient of the death proceeds. Therefore, all other things being equal, the insurer will pay the proceeds to that person upon receipt of proof of death, a completed claim for death benefits, and all other required material. The beneficiary may generally be changed at any time prior to death, so if there is a change of heart as to who is to get the proceeds, it should be done during the lifetime of the insured on a "change of beneficiary" form prescribed by the insurer and returned to the insurer. If the beneficiary of the policy is shown as "the estate of" the named insured, proceeds will generally be paid to the estate via the personal representative. In general, proceeds will become a part of the estate and pass according to the provisions of the Will. If, prior to death, it is determined that someone prevailed upon the decedent to name him/her as the recipient of the life insurance proceeds that may be paid to the estate, the best route is prepare a codicil to the Will that clarifies the decedent's intentions. Most states require that a codicil be signed with the same formalities as the original Will. A potentially complicating factor is whether the decedent had the capacity (i.e. mental wherewithal) to execute the codicil--especially if he/she could have been taken advantage enough to have been talked into naming someone as a beneficiary to the life insurance policy that they did not really want. This issue of capacity could end up being litigated in probate court.
It will go to the alternate beneficiary, if one is listed if not it will be paid to the estate to be distributed in the same way as any other money in the estate.
Yea, if you have two different contracts and the beneficiary is the same, you can have two different policies which is legal.But against same contract, you cannot take two policies when the beneficiary is the same which is illegal.
Individual added to a life insurance policy other than the insured named in the policy. For example, an insured father can have a dependent son and daughter added to the policy as additional insureds. In many instances, adding an additional insured to an existing policy is less expensive than purchasing a separate policy for that insured. In property and liability insurance: another person, firm, or other entity enjoying the same protection as the named insured.
STILL ONE OF THE GREATES BENEFITS AVAILABLE: Life insurance with a named beneficiary is paid outside the estate, directly to that beneficiary. It is not subject to any other claims by anyone involving the decedent. (It is also not taxed). Unfortunately, some people name themselves or their estate (which is the same) as the beneficiary. Then it simply becomes another asset of the estate to be taxed, and distributed after handling the claims against the estate.
The nature of term insurance is that after a set number of years, the coverage ends. At that time, or ideally before, the insured may obtain another term policy with the same or a different insurer, to last for a further period of years. Alternatively, the insured can obtain some other form of life insurance, such as whole life. New term insurance that the insured tries to obtain will likely cost more in monthly premium due to the advanced age of the proposed insured. The premium increase can be ameliorated by reducing the amount of insurance purchased. Additionally, whole life insurance is, by its nature, more expensive, because one of its attributes is a savings element ("cash value") which term insurance does not have. If there have been adverse changes in the insured's health since the issuance of the original policy, they will be considered in the underwriting process. They may result in a further increase in premium (in addition to that attributable to increased age), a disqualification for coverage, or a willingness by the insured to issue a policy with only a limited amount of benefits.