Ex-husband's life insurance policy

[worker_bee]

What is the name of your state? Maryland

While my former husband and I were still married, we took out a life insurance policy for him. I am the primary beneficiary, and my father is the secondary beneficiary. When we separated and subsequently divorced, the divorce decree made no mention of that life insurance policy. Since the divorce about eight years ago, I have continued to pay the annual premium for the policy. I assumed my ex had forgotten about it, and my intention was for the money to be set aside for our child in the event of my ex-husband's death. The policy has a cash value of a few thousand dollars, and I recently learned that my husband intends to either cash in the policy or change the beneficiary to be his sister. Can he do that, since I'm the one who has paid the premium all these years? Do I have any recourse if he cashes in the policy?

 

[Ohiogal]

What is the name of your state? Maryland

While my former husband and I were still married, we took out a life insurance policy for him. I am the primary beneficiary, and my father is the secondary beneficiary. When we separated and subsequently divorced, the divorce decree made no mention of that life insurance policy. Since the divorce about eight years ago, I have continued to pay the annual premium for the policy. I assumed my ex had forgotten about it, and my intention was for the money to be set aside for our child in the event of my ex-husband's death. The policy has a cash value of a few thousand dollars, and I recently learned that my husband intends to either cash in the policy or change the beneficiary to be his sister. Can he do that, since I'm the one who has paid the premium all these years? Do I have any recourse if he cashes in the policy?

He has a right to change HIS life insurance unless the divorce decree stated he did not.

 

[cbg]

If he is the owner of the policy, yes he can.

 

[zddoodah]

I recently learned that my husband intends to either cash in the policy or change the beneficiary to be his sister.

Your husband? You mean ex-husband, right? How did you become aware of this? Did he tell you he's going to do this?

Can he do that, since I'm the one who has paid the premium all these years?

We have no way of knowing if he has this ability, but the fact that you've paid the premiums isn't relevant. Call the insurance company that issued the policy and ask.

Do I have any recourse if he cashes in the policy?

Hard to say without reviewing the policy documents.

It's worth pointing out that, since you divorced, you may no longer have an insurable interest in his life. You mentioned a child. How old is this child? Does your ex have any ongoing spousal or child support obligations to you?

 

[worker_bee]

Thank you all for the responses.

Zddoodah, I did mean ex-husband ... my mistake. We have one adult son (21) together, and my ex has filed to have his child support obligation terminated. He's lost his job and is in bad financial shape. He emailed me to let me know he'd filed court papers to end child support and mentioned that he planned to cash in the life insurance policy. I've spent hundreds of dollars a year to keep the policy up-to-date, for the sole purpose of having that money go to our son. There's no spousal support and never has been.

Oh -- and when I told him I'd been paying the premiums, he said he didn't even know about them. That's when he said he'd just change the beneficiary so his sister could see that our son gets the money.

 

[zddoodah]

We have one adult son (21) together, and my ex has filed to have his child support obligation terminated. He's lost his job and is in bad financial shape. He emailed me to let me know he'd filed court papers to end child support and mentioned that he planned to cash in the life insurance policy. I've spent hundreds of dollars a year to keep the policy up-to-date, for the sole purpose of having that money go to our son. There's no spousal support and never has been.

Ok...just to clarify, the existence of an insurable interest is important with life insurance policies. Section 12-201(a)(2) of the Maryland Insurance Code requires that, for a life or health insurance policy, benefits must be payable to the insured (obviously not possible for life insurance), the insured's personal representative, or a person with an insurable interest. Given that you are divorced without a spousal support obligation and no longer have a minor child for whom either of you has a support obligation (at least not once child support is terminated), there is a serious question whether the insurance company would have any liability under the policy (other than to refund premiums paid after the insurable interest ceased to exist).

For a few hundred thousand dollars, it may be worth consulting with a local attorney and approaching your ex about some sort of split of the cash value of the policy.

 

[worker_bee]

Wow. I had no idea there had to be an insurable interest. I feel like an idiot for having continued to pay every year. Maybe he'll make the payments and change the beneficiary to our son.

Thanks for the helpful information, even though it's not what I wanted to hear.

 

[Zigner]

If you (plural) wanted the life insurance for your (plural) kid, then why not just your kid named as the beneficiary as soon as he became an adult?

 

[worker_bee]

If you (plural) wanted the life insurance for your (plural) kid, then why not just your kid named as the beneficiary as soon as he became an adult?

My ex isn't very organized or even very responsible. I don't think he remembered about the policy because the annual premium bills still came to my address (his old address). When he lost his job, he was trying to figure out some way to get money and remembered about the life insurance. At least, that's my best guess. I don't think he really cares if our son gets the money if he dies. I think he just needs cash.

Honestly, I was hoping he'd forget about the policy so he wouldn't change the beneficiary to be his new wife.

 

[Zigner]

My ex isn't very organized or even very responsible. I don't think he remembered about the policy because the annual premium bills still came to my address (his old address). When he lost his job, he was trying to figure out some way to get money and remembered about the life insurance. At least, that's my best guess. I don't think he really cares if our son gets the money if he dies. I think he just needs cash.

Honestly, I was hoping he'd forget about the policy so he wouldn't change the beneficiary to be his new wife.

Ahhh, shucks. I was with ya right up until your last sentence. Perhaps you didn't mean to say it, but what you said is that you were hoping to steal his policy from him because you both neglected to deal with it during the divorce.

EDIT: I don't think that's how you meant it... If it comes down to it, you may have some sort of recourse under the theory of unjust enrichment for the premiums you paid after the divorce, but you would need to check with an attorney about that.

 

[worker_bee]

Ahhh, shucks. I was with ya right up until your last sentence. Perhaps you didn't mean to say it, but what you said is that you were hoping to steal his policy from him because you both neglected to deal with it during the divorce.

EDIT: I don't think that's how you meant it... If it comes down to it, you may have some sort of recourse under the theory of unjust enrichment for the premiums you paid after the divorce, but you would need to check with an attorney about that.

Ugh. That really isn't how I meant it. We started the policy for our son. I just want to make sure he's taken care of. It really isn't about the new wife. We split up long before they got together.

I'll talk to him and see if he'll just change the beneficiary to our son, and I'll agree to keep paying the premiums.

 

[Bali Hai Again]

I still own and pay on a life insurance policy (with me as beneficiary) on my ex-wife of 20 years. The insurance company said this was valid even though we are divorced. A former employee collected when his ex of 10 years passed on with the same conditions.

The difference here is that OP doesn't own the policy

Ugh. That really isn't how I meant it. We started the policy for our son. I just want to make sure he's taken care of. It really isn't about the new wife. We split up long before they got together.

I'll talk to him and see if he'll just change the beneficiary to our son, and I'll agree to keep paying the premiums.

Good luck with that.

 

[not2cleverRed]

Thank you all for the responses.

Zddoodah, I did mean ex-husband ... my mistake. We have one adult son (21) together, and my ex has filed to have his child support obligation terminated. He's lost his job and is in bad financial shape. He emailed me to let me know he'd filed court papers to end child support and mentioned that he planned to cash in the life insurance policy. I've spent hundreds of dollars a year to keep the policy up-to-date, for the sole purpose of having that money go to our son. There's no spousal support and never has been.

Oh -- and when I told him I'd been paying the premiums, he said he didn't even know about them. That's when he said he'd just change the beneficiary so his sister could see that our son gets the money.

Again, WHO is listed as the owner of the policy? Hint: who are the premium bills addressed to.

One thing that comes to mind is that you can point out to him that you'd like the premiums back if he cashes out the policy.

 

[worker_bee]

Again, WHO is listed as the owner of the policy? Hint: who are the premium bills addressed to.

One thing that comes to mind is that you can point out to him that you'd like the premiums back if he cashes out the policy.

My ex-husband is the owner of the policy. The bills have been addressed to him.

 

[adjusterjack]

My ex-husband is the owner of the policy.

Then, yes, he can change the beneficiary or cash it in if he wants to.

I suppose you can ask him to reimburse him for the premiums you paid, but you said he lost his job and needs money, so good luck with that.