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What happens to a policy if a person that has a policy out on a person and the policy holder passes away?
Wiki User
∙ 13y ago
If a policyholder dies, the designated beneficiary(ies) is entitled to the proceeds. The beneficiary will be named, and an address shown, on the policy. However, if the insured has not updated the address of the beneficiary (if he/she has moved), the insurer may have difficulty finding him/her to pay. Many states require, though, that insurers make a diligent effort to locate beneficiaries for payment of policy proceeds, but just how "diligent" the effort will be is often up for grabs.
If the insurer received proper notice of the insured's death, and a proper proof of claim by someone authorized to file one, and further assuming that the policy was in force at the time of the insured's death, the insurer would pay proceeds to the contingent (secondary) beneficiary if one was named. If one was not named, but if an estate was opened for the insured, proceeds would likely be paid to the estate. If that happens, the proceeds would pass according to the Will, if there was one, or according to the laws of descent and distribution of the state where the insured died.
If the policy was a whole life policy that had accumulated cash value, the cash value may carry the policy for a period of time without payment of premium (the cash value would be debited for the ongoing premium until the cash value is exhausted). At that point, the policy would lapse. If the policy was a term life policy, generally, within a month or so of no premiums being made, the policy would lapse and would be of no further value.
Wiki User
∙ 13y ago
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Who is the person that is the holder an insurance policy?
policy holder
Person who is the holder of an insurance policy?
The person can be called Policy Holder,Insured, Life Assured as the case may be.
What is the difference between a policy holder and a beneficiary?
the person in whose name the policy is issued legally is known as policy holder the person who gains insurance cover is known as beneficiary ,it may be himself or dependents(nominees)
The holder of the insurance policy is called the?
The holder is the owner, In the case of Life Insurance , the person paid is the beneficiary .
What is the name of the holder of an insurance policy?
is it a policy holder?
What happens if beneficiary named on life insurance policy dies before the policy holder?
The policy holder has the choice to change the name of the beneficiary at any time, including after the death of a named beneficiary. If the policy holder doesn't change the name of the beneficiary after the beneficiaries death, depending on what state you live in it goes to next of kin.
What happens to a home insurance policy when the holder dies?
the house is paid off and given to the beneficiary
When an operator on a policy get in an accident who gets surcharged the operator or the policy holder?
That will be the policy holder.
What is the death benefit in life insurance?
When the policy holder dies, his nominated person gets the proceeds in the form of sum assured plus accumulated bonus, loyalty addition if any from the insurance company where from the policy was bought by the policy holder.
How are homeowner claims paid to person who had deed but not policy?
Homeowner insurance claims are paid to the policy holder, in a condo and the damages are being reimbursed by the association the deed and title holder gets the refund
Can a named insured be an excluded driver on an automobile liability policy in New Mexico?
A named insured person can be an excluded driver on an automobile liability policy in New Mexico, if the policy holder wishes to remove a driver from the policy. The policy holder will have to notify the insurance company to make the changes.
Does a whole life policy pay the amoune purchased if the person dies suddenly?
Obviously the claim will be entertained in case of sudden death of the policy holder in whole life policy.
