Change beneficiary after death???

[Val777]

What is the name of your state? NJ

Recently passed away my husband and Insurance Company has informed me that in his life insurance name of his ex-wife and requested the record of his divorce (I sent everything). His divorce process was in 1995 and their marriage was only about one and a half year. They did not have any combined property and etc. My husband was initiator of their divorce for many reasons. After divorce she has moved to another country and my husband has forgat about her. Now Inc. Company accepted all benefits to my name (pension plan, survive benefits, health ins.) except life insurance.

Would you please to give me advice on what I have to do in this situation and what says the Low.

Anyone with any ideas PLEASE, leave a comment.
Valeriya.

 

[BelizeBreeze]

What is the name of your state? NJ

Recently passed away my husband and Insurance Company has informed me that in his life insurance name of his ex-wife and requested the record of his divorce (I sent everything). His divorce process was in 1995 and their marriage was only about one and a half year. They did not have any combined property and etc. My husband was initiator of their divorce for many reasons. After divorce she has moved to another country and my husband has forgat about her. Now Inc. Company accepted all benefits to my name (pension plan, survive benefits, health ins.) except life insurance.

Would you please to give me advice on what I have to do in this situation and what says the Low.

Anyone with any ideas PLEASE, leave a comment.
Valeriya.

and who did they pay the insurance to?

 

[Betty]

It seems you are saying the ins. co. informed you that you are not entitled to the life ins. proceeds that have ex-wife as named beneficiary. Did the ins. co. happen to tell you if the proceeds have been paid out as of yet & to whom? Sometimes they will not give this information out to someone they believe has no "interest" in the policy proceeds. Many life ins. policies have a change of beneficiary policy provision that must be followed exactly in order to effect a change of bene from original bene to current wife or any other person & ins. companies normally abide by this provision. I noted the ex-wife moved to another country. Let us know whether you know if the proceeds have been paid out yet & to whom & we will go from there.

 

[Val777]

In the latest information from IC they did not pay out anything to anybody. IC requested additional information about three weeks ago. I send the record of divorce one week ago.
Since then I do not have any news from them.
Do I have to wait or what to do?

 

[Betty]

Since you just sent record of divorce one week ago which ins. co. requested, it is apparently to soon to hear anything. In most jurisdictions, life ins. cos. are required to pay death claims within a certain period of time after proper notification of death, receipt of death certificate & any other additional info they may require. This period is usually 60 days. However, you may hear something sooner but one week I would say is too soon.

 

[Val777]

Today I got news from IC. They made decision within next 60 days will try to found ex-wife in another country. Then IC will inform me. If they will not be able to found her, they will send check to State of NJ. I will be appreciate, if you explain me how they are going to found her and what is a typical process for most of IC?
And one more question. I read in Internet before and Funeral Home told me that it does not matter who will get check ex-wife or me, or State of NJ, funeral spending mast be cover at the expense of deceased life insurance. Is it true or not? Why I ask, IC told me only beneficiary responsible for funeral spending. It is sounds very strange.
Thank you so mach. You really help me!!!!

Valeriya

 

[Betty]

Today I got news from IC. They made decision within next 60 days will try to found ex-wife in another country. Then IC will inform me. If they will not be able to found her, they will send check to State of NJ. I will be appreciate, if you explain me how they are going to found her and what is a typical process for most of IC?
And one more question. I read in Internet before and Funeral Home told me that it does not matter who will get check ex-wife or me, or State of NJ, funeral spending mast be cover at the expense of deceased life insurance. Is it true or not? Why I ask, IC told me only beneficiary responsible for funeral spending. It is sounds very strange.
Thank you so mach. You really help me!!!!

Valeriya

There are many ways ins. cos. can try to track down someone. I know some ins. cos. if they cannot locate the person (bene) within a reasonable length of time, will pay the proceeds to the estate of the insured. The proceeds would then be used to pay debts including funeral expenses. When the proceeds are paid to a named bene other than the estate, the beneficiary can do what they wish with the proceeds. Apparently this ins. co's. procedure is to pay the policy benefit (proceeds) to the state if bene cannot be located. If they do pay the proceeds to the state of NJ, you might be able to make a claim on the proceeds since you were his current wife. You would have to check with the state.

 

[justalayman]

Betty, would the insurance company paying the benefits to the state simply being done as a "lost property" situation? It would seem short of a finding of death of the named bene, the bene would be entitled to the insurance payments but since they cannot find them, the monies would be turned over to the state as lost property (actually escheated to the state as a holder) which the named bene's heirs could make claim against eventually (if the named bene does not claim it first).

I can see no reason how or why the OP would be able to claim the insurance monies. There are many situations where an insurance policy is maintained with an ex as named bene. Why would this be any different.

Isn't this simply an example of what happens if you fail to change things like this after major life changes? Most people are warned of just such situations.


OP: whoever made and signed for the arrangements is responsible for the funeral costs. There is no responsibility for an insurance policy beneficiary to pay for the funeral.

There is no requirement for anybody to pay for a funeral for another short of a minor or possibly defective person that is still a dependent of another. The state will bury a person and make a claim against the estate for payment if available. If nothing is available, it is paid by the taxpayers. If you have decided to pay for anything because that is what you wanted to do, then you are responsible for that decision, not somebody that had absolutely no input in the decisions.

 

[Betty]

Justalayman - Most life ins. policies have a policy provision that has to be followed in order to change the bene. If change was not requested, benefits (proceeds) would be paid to bene named in the policy. Many policies also contain a provision (sometimes called a facility of payment provision) that enables the insurer to select a bene if the named bene cannot be found after a reasonable length of time. Normally this is the estate of the insured but has also been known to be an immediate family member - ie sibling. The co. I worked for (& most of the cos. we reinsured with) paid the proceeds to the estate. (just as if no bene was named) Usually if our co. received a claim from more than one person (which would the majority of the time be current wife & ex-wife but not always) & after the co. made every effort to determine how to pay the proceeds in compliance with the wishes of the insured & the policy provisions if for some reason they still weren't positive who should get the proceeds, the co. would pay the funds into court & have a judge decide on proper distribution. I don't know of many cos. that paid the proceeds to the state (like here the state of NJ) if bene cannot be located but the times I know that it was done (though not by our co.), we were told any claims for the money would have to be put in with the state. We were told it would be handled just like there was no bene & a current wife could, therefore, make a claim. (This was on one of the exams I had to take to get a professional designation not something our co. did.) I understand where you are coming from though - doesn't seem right but then again if the bene cannot be located within reasonable length of time & payment made to estate of insured (or immediate family member) as many cos. do - the ex-wife in this case & her family would also be out of luck. I would assume, if proceeds paid to state of NJ, OP could put in a claim & see what happens.

 

[justalayman]

thank you very much Betty.

 

[Betty]

You're welcome.
edited to add: Many times the person who the insured/owner (in my experience in the very vast majority of cases the insured & owner would be the same person) would want to get the proceeds at their death don't because the insured didn't do a change of bene - it's something people need to do. Also, it's a good idea in many cases to name a contingent bene.

 

[Val777]

Betty, if I right understood you most of IC have special procedure in order to change the bene. I see you have huge experience, what do you think, maybe in my case, I have to make this request?
Thanks.

 

[Betty]

Betty, if I right understood you most of IC have special procedure in order to change the bene. I see you have huge experience, what do you think, maybe in my case, I have to make this request?
Thanks.

Yes, I worked for a life ins. co. for 35+ years. Most policies have a policy provision/special procedure that needs to be followed to change the beneficiary. (a change of bene form to be completed & signed by owner) Only the owner of the policy would be able to make a change of bene. Since you are not the owner of this policy & the insured has already passed away, there is no way you can change the bene to yourself. The ins. co. will follow their policy provisions, rules & regulations when paying out the proceeds. Sorry.