Dependent Life Insurance

[Zelmer Dawes]

What is the name of your state? What is the name of your state? Georgia

My question is Who should get the benefits of a dependent life insurance policy when the insured murdered the beneficiary, his wife, and then killed himself. It was her policy through her job. She was the beneficiary. He killed her and then killed himself. The insurance company says they will pay his estate instead of her estate. I beg to differ with this decision. They should be paying her estate, because he killed her.

This was a dependent life policy in which she covered her husband as a dependent. In this case, the policy declaration states she is automatically the beneficiary.

 

[Bigfoot]

Are you saying she is the beneficiary of her own insurance policy? This wouldn't make sense.

 

[knotcops]

What is the name of your state? What is the name of your state? Georgia

My question is Who should get the benefits of a dependent life insurance policy when the insured murdered the beneficiary, his wife, and then killed himself. It was her policy through her job. She was the beneficiary. He killed her and then killed himself. The insurance company says they will pay his estate instead of her estate. I beg to differ with this decision. They should be paying her estate, because he killed her.

If this was her policy through her job, she could not be the beneficiary since she would be the owner of the policy. It appears that she named her husband as the beneficiary. This is why the insurance company wants to pay to his estate.

 

[Zelmer Dawes]

He was listed as her dependent on the policy. In this case, the policy states, she is automatically the beneficiary of that portion of the policy. She paid the premium because it was through her job. The premium for the policy came out of her check every two weeks.

 

[Bigfoot]

knotcaps, I'll let you handle this one so that no one gets more confused.

 

[knotcops]

Are we talking about a life insurance policy here? You keep using the word dependent. There are Owners of a life policy, Insureds and Beneficiaries. The policy is taken out by the Owner. The Owner names an Insured and a Beneficiary. The Owner can be the Beneificiary ie; I own the policy on my wife, the Insured, and I am the Beneficiary if she dies. The Owner however, cannot be the the Beneficiary if the Owner is the Insured. The Owner and the Beneficiary cannot be the same person. The reason being that if the Owner dies, so does the Beneficiary since they are one in the same.
Hope this makes sense to you.

 

[Zelmer Dawes]

This is a dependent life policy, where she is the owner. She had him on as a dependent spouse, in which case the policy states she is the beneficiary of that part or she couldn't have elected to name another beneficiary, but she didn't. He was the insured; she was the beneficiary. I don't know what I am saying that is confusing you. It is simple as I stated. She named her only son as her beneficiary for her portion, which was the main part. I guess you could say she was the owner and the beneficiary. The owner, my sister, is not the insured; her husband was the insured. He killed her, who was also the beneficiary of his portion of the policy. It is called dependent life insurance when it comes to him. He killed himself after killing her. Who should get his portion of the policy? His estate or hers.

 

[Zelmer Dawes]

This is a dependent life policy, where she is the owner. She had him on as a dependent spouse, in which case the policy states she is the beneficiary of that part or she couldn't have elected to name another beneficiary, but she didn't. He was the insured; she was the beneficiary. I don't know what I am saying that is confusing you. It is simple as I stated. She named her only son as her beneficiary for her portion, which was the main part. I guess you could say she was the owner and the beneficiary. The owner, my sister, is not the insured; her husband was the insured. He killed her, who was also the beneficiary of his portion of the policy. It is called dependent life insurance when it comes to him. He killed himself after killing her. Who should get his portion of the policy? His estate or hers.

 

[Bigfoot]

We really do want to help you sort this out, so let me substitute a few words to make sure we understand.

This is a dependent life policy, where she is the owner.

--This is a life insurance policy, providing life insurance coverage on the wife and a term rider (perhaps) for life insurance coverage for her husband. (We'll name her portion coverage A and the husband's rider as Coverage B.)

She had him on as a dependent spouse, (Coverage B) in which case the policy states she is the beneficiary of that part....He was the insured; she was the beneficiary (Coverage B).

--Main policy was on her (Coverage A). The intent was to have her as the beneficiary of the portion covering him (Coverage B).

I don't know what I am saying that is confusing....She named her only son as her beneficiary for her portion, which was the main part.

--She selected her only son as the beneficiary of her life portion (Coverage A) .

I guess you could say she was the owner and the beneficiary.

--She was the owner of the entire policy covering him and her. She is beneficiary of his portion (Coverage B)

The owner, my sister, is not the insured; her husband was the insured. He killed her, who was also the beneficiary of his portion of the policy.

--Your sister was beneficiary and her husband the insured of Coverage B)

It is called dependent life insurance when it comes to him.

--Again, an insurance rider onto her main coverage.

He killed himself after killing her. Who should get his portion of the policy? His estate or hers.

--First, her son still gets the proceeds of Coverage A. Your question is whose estate gets Coverage B proceeds. Here's where it will get interesting.

The insurance company will expect the coroner to determine if in fact her time of death preceded his. I know you're saying he killled himself after killing her, however, the actual time of death will best be determined by the coroner. I know this sounds really nitpicky, however, the coroner must determine if her death was instantaneous to his, or if she lingered any at all, even without any appearance of life.

The insurance company will also have to determine how to apply their suicide clause. Here's where one hour will make all the difference. If he died first, she immediately would receive the proceeds (on paper). If she died first, he would receive the proceeds (on paper), which would then pass on to his estate.

Hopefully her son would inherit some benefit from his estate as well, although there may be other heirs. With the mother's proceeds, however, the son does not have to divide with any one else.

I'm sorry for your terrible loss.

 

[Zelmer Dawes]

You are clear about the coverage, A and B; however, the fact that he killed her, commiting a felony, should apply here. She insured him, and because he killed her and she died first, he nor his estate should benefit from that. Her death should be treated as if he died first. The Georgia Statue says so. If it was an accident where she died first, I could accept your explanation, but this was not the case. He premeditately shot and killed her.

 

[Bigfoot]

Have you considered suing his estate for wrongful death?

 

[Zelmer Dawes]

His heirs and I (and my nephew) agreed during the probate settement that we would not sue his estate. He doesn't have enough in his estate to sue for. This Georgia Statue about her having predeceased him because he killed her, if enforced, should keep me from having to do that anyway. He died almost broke. She had more in her estate.

 

[knotcops]

This is a dependent life policy, where she is the owner. She had him on as a dependent spouse, in which case the policy states she is the beneficiary of that part or she couldn't have elected to name another beneficiary, but she didn't. He was the insured; she was the beneficiary. I don't know what I am saying that is confusing you. It is simple as I stated. She named her only son as her beneficiary for her portion, which was the main part. I guess you could say she was the owner and the beneficiary. The owner, my sister, is not the insured; her husband was the insured. He killed her, who was also the beneficiary of his portion of the policy. It is called dependent life insurance when it comes to him. He killed himself after killing her. Who should get his portion of the policy? His estate or hers.

After reading this response, Bigfoot's explanation of the situation now makes more sense. Funny how a little more info clears up the situation, somewhat.

Nice response, Bigfoot!

 

[Dandy Don]

Exactly who paid the premiums on this policy, and do you have access to the actual policy and its provisions?

I just wanted to suggest that if you are not satisfied with the outcome of the insurance company's decision, you may want to file a complaint with your state insurance commissioner to have the matter investigated further to see if that outcome was legal and proper.

 

[Zelmer Dawes]

Thank you, Dandy Don. I will go to the insurance commissioner of Georgia. To answer you question, my sister whom he killed paid the premium.