Company won't pay life insurance to beneficiary

[phantasy]

What is the name of your state? nebraska
My father passed away last year. The company he was retired from says he didn't have life insurance. The company pays for the life insurance. My father received all benefits including pension, medical and dental when he retired. After filing his final 1040, we were informed that he had a w-2 for the life insurance. Apparently the company pays the premium and my father had to pay the taxes on that premium every year. The company says the w-2 was a mistake. I feel that if 1. if my dad didn't have the life insurance, he most definately wouldn't have paid taxes on the premium, 2. how can the company claim it a mistake, when they paid the premium every year since he retired in 2002? My father took early retirement at age 50. 3. they mentioned that possibly they could pay back the premium taxes, but I feel that my father thought he had life insurance, he paid the taxes on it every year, and the beneficiary should get that life insurance. I'm not the beneficiary, i'm the pr. for the estate. Any thoughts or comments would be greatly appreciated....

 

[Betty]

Usually for group ins. you don't get a policy or even a certificate to prove you have life ins. However, the W-2s showing the amt. of premium pd. by the employer for life ins. that your father had to pay taxes on would indicate he did though they are saying this was a mistake. Did your father have a benefits booklet or something with his retirement benefits listed? Do you know any other employees/retired employees of this co. - what do they say?

 

[phantasy]

fathers life insurance

Complicated situation. My father was sick in 2000, fired from his job, he fought it and won reinstatement with full active status so that he could file early retirement in 2002. He was offered, medical, dental, gift certificates for 24 years of service and his pension. In fact, his pension rolled over to mom. The employee handbook states life insurance is paid for by the company. Other retirees also have the life insurance and are getting a w-2. But obviously, they are still alive. No where does it state that he was NOT to have life insurance. My father was not the type of person to pay any extra taxes on something, if he wasn't to have it.

 

[Dandy Don]

What is the dollar amount shown on the W-2 and what company did it come from (the employer company or the insurance company) and does the description mention anything about payment for taxes or premium?

You may want to file a complaint with the Nebraska Insurance Commissioner to have this matter officially investigated (do a search engine search on the phrase "Nebraska Insurance Commissioner" and you should find a link to a website with his phone number or mailing address).

Best of luck to you in getting this resolved.

DANDY DON IN OKLAHOMA ([email protected])

 

[phantasy]

insurance info

The w-2 came from the employer and it came with a small paper that specifies that Retirees would receive a w-2 for life insurance over $50,000.
The employer pays for the life insurance the employess pay the taxes on it.

 

[Dandy Don]

But the W2 you have doesn't really help your case as far as the insurance goes. Is the W2 just for his wages/salary alone? The small paper attached doesn't really help either, because you have no way of knowing if his insurance was worth more than $50,000 or less than that.

 

[phantasy]

w-2

He got a 1099 for his pension and a w-2 for the premiums that the company paid and he had to pay taxes on. We know that 8 yars ago he had a benefit amount of 86600 life insurance.

 

[Betty]

But the W2 you have doesn't really help your case as far as the insurance goes. Is the W2 just for his wages/salary alone? The small paper attached doesn't really help either, because you have no way of knowing if his insurance was worth more than $50,000 or less than that.

When your group life ins. is over $50,000, they send you a separate W-2 showing the amt. of premium pd. by the employer which you have to report as income on your tax forms. The amt. is put on the W-2 under tips, wages & other compensation -- amount might be something like $500 for example. You won't get the W-2 if amt. of gr. ins. less than $50,000.

 

[phantasy]

w-2

I agree that the w-2 was for life insurance premiums only. We are still trying to resolve with the employer that my father had life insurance. They claim that the w-2 was a mistake.

 

[Dandy Don]

We all know that it's possible that companies do make mistakes with W2's, but if you know the name of the insurance company involved, I think it would be smart for you to check with the insurance company yourself about this matter. I somehow do not feel that the employer will be honest with you in this matter. If the insurance company won't cooperate with you, then it's time to file a complaint with the Nebraska State Insurance Commissioner.

DANDY DON IN OKLAHOMA ([email protected])

 

[phantasy]

Life Insurance Benefits

We have been talking to several people and looking at several documents. I don't know what to do now. Apparently, he did not have life insurance, but the company still paid the premium and my father paid taxes on that premium for 3 1/2 years after his retirement started til the time of his death. Our local insurance agent says, regardless, if your father had signed a piece a paper stating he did not want life insurance, the fact that the company still paid a premium, would entitle the life insurance benefit to be paid out.
We know the life insurance in 1998 was at 86,000. But at the time of the settlement in 2001 and for retirement, my father was not offered life insurance. But the company still paid the premium and my father paid the taxes on it.
Any help? or thoughts or ides?

 

[Dandy Don]

As you have already been advised, I repeat, file a complaint with the Nebraska Insurance Commissioner so he can investigate this with the insurance company on your behalf and you can then get a definitive answer one way or another.

 

[phantasy]

state insurance commission

Can I file a complaint with the State Insurance Commission? My fight is with his employer. I don't even know who the insurance carrier was.

 

[Dandy Don]

Gee whiz--you should have gotten that information from the employer a long time ago, but go ahead and file the complaint and the insurance commissioner will get it from them in the process of the investigation as long as you provide your husband's date of birth and years of service with his employer. Best of luck to you!!

 

[phantasy]

insurance info

Maybe I didn't explain my situation very well.
The company my dad worked for (24 years), pays the life insurance on a group policy. My dad is just a number included in the group.
My problem, is that the employer is stating he didn't have life insurance. My dad signed a paper of retirement benefits, and life insurance was not on there.
My fight is the fact, the company has been paying the premium, my dad has been receiving the w-2 for 3 years now, and he paid taxes on that premium.
My local insurance agent, says that since a premium was paid and your dad paid taxes on that premium, the company he worked for has to pay out the life insurance benefit.
I am having trouble finding a lawyer in our area that speciallizes in insurance claims.
My dad was a very meticulus person and he did his own taxes. There is no way he would have paid taxes on something, he didn't think he had. I.e. life insurance.