How much of a payout does one receive if the benefiary dies?

[DawnInWV]

What is the name of your state (only U.S. law)? NJ

My friend Ed's mom took out a life insurance policy on him when he was a child. All I know was that it was a $10,000 policy. Ed's mom died last month, and she was the only beneficiary on the policy. The insurance company told him to mail them proof of his mom's death and they would mail him some money. The question we're all asking is this: Would Ed get the whole $10,000 benefit? The policy was started about 30 years ago and we're all wondering how much money he gets.

 

[seniorjudge]

Ed should ask the insurance carrier these questions.

But I also wonder why he'd want to cash this in now?

 

[DawnInWV]

Ed should ask the insurance carrier these questions.

But I also wonder why he'd want to cash this in now?

He is facing hard times financially right now and just found the paperwork for this policy when looking thru his mom's old papers. I know he's hoping for the full $10K, but we aren't sure how this works.

 

[TinkerBelleLuvr]

Was it a whole life policy or a term life policy?

Were the premiums up-to-date?

All questions to be asked of the insurance company.

 

[DawnInWV]

I know the premiums were up to date. I'm not sure of the type of policy I will have to ask him.

 

[ErinGoBragh]

What is the name of your state (only U.S. law)? NJ

My friend Ed's mom took out a life insurance policy on him when he was a child. All I know was that it was a $10,000 policy. Ed's mom died last month, and she was the only beneficiary on the policy. The insurance company told him to mail them proof of his mom's death and they would mail him some money. The question we're all asking is this: Would Ed get the whole $10,000 benefit? The policy was started about 30 years ago and we're all wondering how much money he gets.

Running on the assumption that this is a whole life policy, your friend Ed needs to call the insurance company and ask what the surrender value of the policy is. It will vary based on many factors exactly what the policy value is.