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Beneficiary's obligation

The beneficiary has no legal obligation to pay the bills solely in the name of the insured.

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โˆ™ 2009-10-26 07:19:17
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Q: Does the beneficiary have to pay bills left by the insured?
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Will the insurance company pay the beneficiary if the beneficiary kills the insured?

Not if they found out.

May the policyowner change the beneficiary after the death of the insured?

Assuming you are talking about Life Insurance the answer is no. Once the insured is deceased, this will trigger the insurance company to pay the benefits to the beneficiary, and the policy will no longer exist. The owner no longer owns anything.

How long does it take to get a settlement from life insurance companies?

On average a company has 60 to pay the settlement or notify the beneficiary if there are any problems concerning the settlement. If the beneficiary killed the insured person the company can refuse to pay.

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).

What happens if there is no benificiary for a life insurance policy?

If there is no living beneficiary then the beneficiary becomes the estate of the insured. If there is a will the administrator of executor will have the benefits to pay for last expenses and then pay out as the State Law mandates. If there is no will the magistrate or probate court will assign an administrator or executor to handle these items.

Is a wife responsible for her husbands medical bills when he dies?

Indirectly she will pay for the bills. It is the responsibility of the estate to pay the bills and she will inherit whatever is left over.

Does a Will supersede A Life insurance beneficiary clause?

No, They are two separate legal documents with entirely different purposes. An insurance policy is a contract between the insured and the Insurance company. The insurance company is bound by the contract to pay the beneficiary designated by the insured policy owner. Life insurance proceeds are for the designated beneficiary. Heirs in a will are designated inheritance of estate by the will. A will is not a contract, it is a document of assignment.

Uninsured medical bills?

Should be turned into the company that is handling the uninsured motorist claim, (generally company that insured the 'insured' vehicle), they will most typcially wait to pay these bills until settlement is reached. If that didn't answer you question please expand it.

Are both parents entitled to the payout of life insurance if only one is named beneficiary?

I assume that you are referring to the unfortunate circumstance of the dealth of a child. An insurance policy, including a life policy, is a contract between the insured and the insurer. The insurer promises to pay a sum of money to or on behalf of the insured or his/her designee (the beneficiary) upon a determinable event (sometimes called a "contingency"). With a life policy, that event is the death of the named insured for a reason that is not excluded from coverage. The insurance policy will designate a beneficiary to whom the proceeds are payable. Therefore, absent other facts that you have not stated, the insurer will pay proceeds only to the named beneficiary.

Can decreasing term life insurance be used to pay off a mortgage?

Not unless the insured dies. Then the death benefit can be used for whatever purpose the beneficiary chooses.

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.

WHAT IF Residuary beneficiary owes money to estate?

The estate can require that the beneficiary pay the money back. Or they may offset the amount against what they get. If there is anything left over, there shouldn't be a reason to make them pay it back.

How much tax will you have to pay on a 100000 dollar life insurance policy?

If you are referring to the death benefit paid if the insured dies, then no tax is due at all. This is the case if the money was left to a person as beneficiary and as long as the premiums were never deducted as any type of expense. If the beneficiary was the estate of the insured and the estate is large enough there could be estate tax consequences but under most normal circumstances there is not income tax on death benefits from a life insurance policy.

Do you have to pay a reactivation if there is a long time account that has been open by another person and you are the only beneficiary to it?

Do you have to pay a reactivation fee when a peson had a long term account with Bank Of America and they passed away and left you the beneficiary

Is it better to close out a small IRA and pay bills with it than leave it to beneficiary?

The estate is going to have to resolve debts. It is likely to have to be liquidated anyway.

What if there is not an estate to pay for the funeral does the beneficiary of life insurance policy have to pay?

The life insurance is part of the estate not separate from it. In the UK and most other countries, all debts starting with the funeral expenses must by law be paid first from a persons estate. Once all funeral costs, debts and expenses are paid from the estate, only then can any monies be paid out (if there are any left after payment of such bills and expenses).United StatesWhen the decedent named a beneficiary on a life insurance policy the payout goes directly to the beneficiary and is not considered part of the estate. Being a named as a life insurance beneficiary does not oblige the beneficiary to pay for the funeral. The next of kin, if any, must pay for the disposition of the body. If the beneficiary is also a next of kin you may be successful in suing them for their share of the expenses.

Will life insurance pay for cancer hospital bills?

Life insurance makes a single payment to the designated beneficiary for the entire amount of insurance. It does not pay addidtional amount for hospital bills or such. Don't confuse life and health insurance. Generally the hospital cannot make any claim on the life insurance payment made to the benificiary. Some life insurance policies have provisions that can make payments directly to the insured for part of the life insurance if the disease is terminal. The payments are at the request of the insured to use in any manner they desire.AnswerDepending on the insurance policy, a terminal patient may obtain funding to cover treatment while they are still alive. This is not a loan. After death, before the estate can pay out, the bills have to be paid.

If shares in a company are left to you as a beneficiary under a will can they be transferred to your name?

Certainly, provided they don't have to be sold to pay debts.

Do you have to pay taxes when you are left money as a beneficiary from an IRA account?

taxes are paid upon withdrawal at a later rate

Can anyone but the insured of a life insurance policy change the beneficary on a life insurance 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).

Can you explain life insurance in very simple terms?

Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.

If your mom died and left unpaid bills would you have to pay them?

No - you are not liable for their debts

What does disposal income mean?

It's the money you have left to spend after you pay your bills.

When proceeds of a life insurance policy are paid into the estate of the insured?

I have written many policies where the beneficiary is listed as the "Estate of Insured". This is a common method of insurance planning but the client needs to have a will in order to direct where the funds are to go. Also "Trusts" are often funded with life insurance proceeds as methods of estate planning. An insurer may also pay proceeds to the estate of an insured if the named beneficiary dies before the insured and the insured does not name a secondary ("contingent") beneficiary. One of the big problems with proceeds being paid to the insured's estate is that, depending upon the amount of the insurance proceeds when added to other estate assets, is that the total may trigger an estate tax liability when one would not otherwise exist.

Does a will affect life insurance proceeds?

A will does not normally change a life insurance policy. The policy is a contract between the insured to pay a beneficiary. If the policy leaves the money to the estate, the will then controls the dispensation.