Changing Life Insurance Benefit to Direct Deposit

[CarBuyerEE]

I have someone who is receiving monthly life insurance benefit check. He is currently receiving paper check each month, but would like to change to monthly direct deposit. As far as I know and in my common-sense, there is no provision in the benefit settlement insurance company can use against the beneficiary for switching to direct deposit of monthly checks. Does anyone know otherwise or anyone know if there's anything to be careful about when making this kind of a change?

 

[cbg]

Only in the minds of a handful of paranoids.

 

[CarBuyerEE]

Wordings of direct depost agreement terms

"If any overpayment is made, I authorize the named bank to return to the paying company the amount transferred or if I deposited to my account, to refund the amount of incorrect payment, or if less, any funds available in my account to the paying company and to deduct that amount from my account. To comply with making any payments to the paying company, I authorize the named bank to share all information about my accounts at the named bank to the paying company. These authorizations cannot be revoked."

Let's say my monthly benefit payment is $100. Above wording sounds to me, if they pay me $110 (overpayment), I refund them the incorrect amount $110, instead of $10 overpayment. If they pay me $90 (underpayment), and I have $500 in my bank accounts, I pay them everything in my bank accounts ($500) plus $90. That's how the wording of the agreement terms sounds to me. Any opinions?

 

[HorseUrodeInOn]

Are you asking that if they underpay you, are they going to take $500 out of your account? No, that's not going to happen. If they overpay you, the overpayment will be returned and then the correct amount will be repaid.

 

[LdiJ]

"If any overpayment is made, I authorize the named bank to return to the paying company the amount transferred or if I deposited to my account, to refund the amount of incorrect payment, or if less, any funds available in my account to the paying company and to deduct that amount from my account. To comply with making any payments to the paying company, I authorize the named bank to share all information about my accounts at the named bank to the paying company. These authorizations cannot be revoked."

Let's say my monthly benefit payment is $100. Above wording sounds to me, if they pay me $110 (overpayment), I refund them the incorrect amount $110, instead of $10 overpayment. If they pay me $90 (underpayment), and I have $500 in my bank accounts, I pay them everything in my bank accounts ($500) plus $90. That's how the wording of the agreement terms sounds to me. Any opinions?

It doesn't even remotely say that. Notice the "or"?

The wording isn't really as good as it should be, but its basically saying that they can take the incorrect payment back, but if it isn't there any longer you will refund them the full amount or at least whatever is in your bank account if your bank account holds less than the full amount.

 

[CarBuyerEE]

It doesn't even remotely say that. Notice the "or"?

The wording isn't really as good as it should be, but its basically saying that they can take the incorrect payment back, but if it isn't there any longer you will refund them the full amount or at least whatever is in your bank account if your bank account holds less than the full amount.

Thank you for your interpretation. I would agree with your interpretation. However, if I'm not comfortable with the wording for lack of clarity, can I ask the insurance company to revise the wording or is there any other ways to make them provide something in writing that will say that I will still get my settled monthly benefit after paying back the incorrect amount, if any overpayment is made, if I opt for direct deposit? Thank you.

 

[LdiJ]

Thank you for your interpretation. I would agree with your interpretation. However, if I'm not comfortable with the wording for lack of clarity, can I ask the insurance company to revise the wording or is there any other ways to make them provide something in writing that will say that I will still get my settled monthly benefit after paying back the incorrect amount, if any overpayment is made, if I opt for direct deposit? Thank you.

We are talking about an insurance company here. Believe me they are not going to attempt to steal any money from you or mess things up deliberately. They cannot afford to do that because it would cause them untold problems. Also, the odds of them making a mistake and depositing the wrong amount of money are slim to none.

You are seriously over worrying the issue.

 

[Zigner]

US Law Only

 

[CarBuyerEE]

US Law Only

I'm sorry, but what do you mean by US Law Only?

 

[Just Blue]

I'm sorry, but what do you mean by US Law Only?

As you never listed the state per the TOS of this site...We are left to assume you are NOT in the US. This site deals in US Law Only.