Key Person Life Insurance - Want it cancelled

[nbeaule]

What is the name of your state? Maine

I sold my business earlier this year and there was a key person life insurance policy on me - with a substantial death benefit. The new owners "inherited" the policy, however I resigned from the company but they refuse to cancel the policy, even though I no longer have anything to do with the business.

Do I have any rights since I am the subject of the policy? I need this to be cancelled. Any advice is appreciated!! Thank you.

Nancy

 

[Betty]

I don't understand why they would need this policy on you since you are no longer a "key person" at the business. Is the policy owned by, premiums pd. by & beneficiary the business - I would assume so.

 

[nextwife]

You might notify the carrier that you are no longer associated with the business. It is likely the carrier will not want to continue the coverage in this situation.

Take up skydiving as a hobby- bet they'll be happy to drop you!

 

[moburkes]

You might notify the carrier that you are no longer associated with the business. It is likely the carrier will not want to continue the coverage in this situation.

Take up skydiving as a hobby- bet they'll be happy to drop you!

The only person that the carrier will talk to is the owner of the policy. Therefore, the only pertinent question is: Who owns the policy?

 

[nextwife]

The only person that the carrier will talk to is the owner of the policy. Therefore, the only pertinent question is: Who owns the policy?

I didn't say the carrier would talk to him. I said he should write and NOTIFY the carrier of his personal seperation from the company and that he is no longer a "key person". It is likely that they are not entitled to keep him covered as key person if he is no longer associated with the company.

 

[moburkes]

I didn't say the carrier would talk to him. I said he should write and NOTIFY the carrier of his personal seperation from the company and that he is no longer a "key person". It is likely that they are not entitled to keep him covered as key person if he is no longer associated with the company.

I'm still disagreeing. I've never written a key person policy, however, once the policy is issued, the insurance company won't cancel it, unless the premiums aren't being paid.

 

[Betty]

I'm still disagreeing. I've never written a key person policy, however, once the policy is issued, the insurance company won't cancel it, unless the premiums aren't being paid.

I agree with you - at the co. I worked for -- the owner had to request the policy be cancelled. Of course, it would also terminate (like you indicate) if premium payments were stopped.
OP - who is owner of policy as we requested previously?

 

[moburkes]

Thanks, Betty, for the clarification. I did not mean to imply that the owner cannot cancel a policy, but when I re-read what I wrote-it looks as if that was what I was saying. Sorry about that.

Two ways to cancel:
1. Owner
2. Nonpayment

OP: If you didn't want the new company to be able to keep the policy active, then you should have cancelled it before you sold it (if owned by corporation).

 

[Betty]

Thanks, Betty, for the clarification. I did not mean to imply that the owner cannot cancel a policy, but when I re-read what I wrote-it looks as if that was what I was saying. Sorry about that.

Two ways to cancel:
1. Owner
2. Nonpayment

OP: If you didn't want the new company to be able to keep the policy active, then you should have cancelled it before you sold it (if owned by corporation).

I understood what you meant since you said previously co. would only talk to owner & pol. could terminate if prems. not paid - I was agreeing with you. Those two things are correct. (I was agreeing with you & not nextwife in this case.)
P.S. I like the signature quote sr. judge came up with for you.

 

[Betty]

OP - let us know who was owner, prem. payor & bene of policy. What type of business was it (ie partnership, corp.)? Was there any type of contract/agreement re life ins. on you/key employees & anything in contract re amt.; who will own, pay prems. & be bene; anything re what happens to ins. pol. should your employment be terminated (ie pol. will be terminated, can be transferred to you as a personal policy which is sometimes done - you would become owner, prem. payor & name the bene), etc.?