Life Insurance Question

[clubber1996]

What is the name of your state (only U.S. law)? Iowa

My father died in 1995. My mother received one of his employer offered life insurance plans. She died in 1996. 13 years later another employer offered life insurance policy is discovered. Dad had an administrator. Mom had an executor and a will. Mom is also listed as beneficiary on dad's employer card (however, employer no longer has that on file). Executor/admistrator does. Insurance company wants employer to back it up. There are 8 children. Life insurance company made payouts to 6 and did not contact executor/administrator (one of the other children) or mom's one and only beneficiary of her will (one of the other children). We think the policy needs to be paid through her estate- 2 reasons (she survived our father and she is listed as beneficiary). Therefore, it should go through her will and to that beneficiary. Insurance company says too bad, already paid out, blah, blah. Policy is only for $3,000. What do u think? We also have the paperwork for the first employer offered life insurance policy that signifies my mom as beneficiary and it has a employer signature on it (validation). However, insurance company says that one is from Aetna and has no bearing on the one from MetLife (I think they do)--- both are employer offered and both are listed on employee enrollment card. Thank You.

[momm2500]

have you read the life insurance policy? as far as who gets the money depends on the wording in the actual policy. how did the insurance company know to send checks to at least 6 of the children? They had to know something or have something that indicates how to contact at least 6 of the 8 children. it does not really matter that she did survive your father, this was not discovered till well after your mother passed. this would cause more problems if it was paid to the estate since the estate should be closed after 1996 death. so it would cost more money to re-open the estate to deposit the money and then distribute to the beneficiaries and the $3,000 would end up being somewhere around $1,000 after legal fees and paperwork.

[clubber1996]

Originally Posted by momm2500

have you read the life insurance policy? as far as who gets the money depends on the wording in the actual policy. how did the insurance company know to send checks to at least 6 of the children? They had to know something or have something that indicates how to contact at least 6 of the 8 children. it does not really matter that she did survive your father, this was not discovered till well after your mother passed. this would cause more problems if it was paid to the estate since the estate should be closed after 1996 death. so it would cost more money to re-open the estate to deposit the money and then distribute to the beneficiaries and the $3,000 would end up being somewhere around $1,000 after legal fees and paperwork.

No, I have not seen the policy, but again we have our mother written as beneficiary on the enrollment card and she had a will. The executor/administrator contacted employer immediately after death and they brought to our attention the first policy. Are they at fault for not alerting our mother of the second? I still believe that her survivorship should matter. I read on another forum according to Iowa Beneficiary laws that it needs to be processed through her estate? She survived him. Isn't that correct?

[cbg]

Not necessarily. Not if he had contingent beneficiaries named.