Certificate from a term policy ?

[vrandall]

Woodman of the world sent me a final notice for a certificate that is a term policy that I did not know that I had. It seems someone signed me up for when I was born and never made payments on the policy. Woodman of the World issued a loan against the policy to make the payments, until now it seems. Now they want me to make a modest payment and catch the policy up to date, or they will close out the policy and report to the IRS of an income of about half of the policy is worth.

Now my question is: Can they do that with a policy that I am sure I did not request or sign for when I was born. And what can I do to not have to pay the IRS additional taxes on the above policy.

Thanks
Van Randall

 

[Dandy Don]

Is it possible your parents took out this policy? How much are they asking you to pay and how much does the policy pay out? Get more details from WOODMEN about exactly WHO did get the loan on the policy. YOU are not obligated to make the payment if you don't want to. If you find out who purchased the policy you should inform that person that THEY need to make the payment OR ask for a refund if that is possible.

 

[moburkes]

This isn't a term policy. Term policies don't have cash value from which to draw money to pay claims. And, since you weren't the owner of the policy, you don't receive the benefits (cash) nor the IRS penalties. This doesn't make sense to me.

If someone died and you were the beneficiary, you wouldn't even owe penalties...