Life Insurance Beneficary

[ajc14]

What is the name of your state? Washington

I was married for 18 years and my ex-husband made me his Beneficary of his Life Insurance, we have to kids together. He passed away Last Oct of 2004.
He never took my name off of it. He had told me that he wanted to me on it. what I need to know is isnt a beneficary a beneficary anyone can be one.?
this right.The Life Insurace Company are giving me a hassle. Do you have any clue on what I can do...Also what is a Contigental Beneficary. I do get his retirement from the state.But he had that fixed that if something were to ever happen to him that I would get .

 

[somarco]

Once named a beneficiary that designation will not change unless the owner of the policy makes such a change, or you pre-decease the insured. There are a few other situations that could deny your benefits but those situations are rare and do not appear to apply here.

Individual life insurance policies require an insurable interest at the time the policy is issued. Changes that occur later to remove that interest do not affect your ability to collect.

Group life insurance usually requires an insurable interest at time of death. If this were a group policy the carrier may want proof of insurable interest before paying.

A contingent beneficiary is one who succeeds the primary beneficiary if the primary is no longer eligible to receive the proceeds.

 

[ajc14]

What would happen if we got a divorce,,,does that have any impact on the life insurance policy. Anyone can be a Beneficary whether or not there married or not,,,Isn't that true. Can't one name anyone as there Beneficary?
Please let me know.

 

[somarco]

Divorce does not change the status as a beneficiary. The insurable interest in an individual life policy is established when the policy is issued.

Even with a divorce, often there are other financial obligations (such as alimony & child support) that preserve the insurable interest, although that is not necessary to preserve your rights.

What specifically is the carrier doing to "hassle" you over the payout?

 

[ajc14]

I notified the Insurance Company in Oct 2004 to find out if my ex-husband still had his life insurance and if I was still named the beneficary, The insurance Company did send me a letter stating that yes I am the Beneficary and the proceeds would come to me. Well After I sent them a copy of the death Certificate and had all his medical records sent to them I get a letter the end of March saying that I am not entitled to get it because we were divorced and there not going to give it to me...
Can't anyone be a beneficary regardless whether or not there married or divorced or just some john doe off the street.

 

[ajc14]

I notified the Insurance Company in Oct 2004 to find out if my ex-husband still had his life insurance and if I was still named the beneficary, The insurance Company did send me a letter stating that yes I am the Beneficary and the proceeds would come to me. Well After I sent them a copy of the death Certificate and had all his medical records sent to them I get a letter the end of March saying that I am not entitled to get it because we were divorced and there not going to give it to me...
Can't anyone be a beneficary regardless whether or not there married or divorced or just some john doe off the street.My Ex-husband had never changed or taken my name off from being the beneficary,nor did either one of us re-marry.

 

[somarco]

Is this a group life policy or individual plan?

Was your husband the owner of the policy?

Do you have a copy of the policy? If so, what does the policy say with regard to naming a beneficiary?

Was there a court order or some other agreement whereby your husband was to pay monies to you after the divorce? (Alimony, child support, etc).

How much money is involved here? (Face amount of the policy).

 

[ajc14]

Hi: He had worked for Washington State University in Pullman Washington. The Life insurance Company's name is ReliStar. I The Only thing that I have is a letter that the Insurance Company wrote to me back in November saying yes that I am his Beneficary and all the proceeds would come to me. $27 thousand dollars then after I sent them the Death Certificate they decided that I was going to get it because it said that we were divorced. He never changed it and had no intentions of doing it . I get his whole Retirement check from The Statewhich I will receive for the rest of my life and I was his Beneficary on that as well.

 

[somarco]

If this is a group life plan, (Reliastar is a group carrier), then insurable interest must be proved at time of death. Divorce does not nullify that relationship, especially if there is an ongoing financial obligation. You must prove the insurable interest existed at his death to receive the proceeds. Otherwise they will be payable to his estate and distributed accordingly.

 

[ajc14]

What do you mean by insurable interest.....also there is no will or estate. Don't they have to release the money to me beings I am the beneficary.

 

[Dandy Don]

There is no excuse for the insurance company jerking you around like this, just because the don't want to pay out.

I suspect that some low-level clerk is trying to play lawyer, but they don't know what they are talking about. Yes, a divorced spouse is prevented from inheriting FROM THE ESTATE (and this is possibly what the insurance clerk may be thinking of), but the insurance money passes outside of this estate and is payable directly to the beneficiary, so your status as divorced or not should not even have any bearing here--if YOU are named the beneficiary, then the money is yours, as you rightfully thought.

I suggest you file a complaint with the Washington Insurance Commissioner (you may find a postal mail or e-mail or phone number at their website, www.insurance.wa.gov) and have them investigate this on your behalf, and I'm willing to bet anything they will get off their duff and mail you your payment. Best of luck!!

DANDY DON IN OKLAHOMA ([email protected])

 

[ajc14]

Now the Insurance Company is saying that there are contigent beneficaries, I do not recall that ever happening. Doesnt that mean they can't claim the money unless I am deceased.

 

[somarco]

Insurable interest means you would suffer a direct & calculable financial loss upon the death of an individual.

MOST group life requires evidence of an insurable interest at time of death of the insured. This differs from the insurable interest provision in an individual life insurance policy . . . which is why I kept asking, and never got an answer, if this was individual or group.

Named beneficiary or not, IF this was a group life plan and IF the contract requires an insurable interest at death, and IF you fail to prove you had such an interest, the proceeds would be payable to the estate.

So far you have not provided sufficient information to know if the carrier is giving you the run around or not. Reading between the lines, it SEEMS they are simply following the terms of their contract.

 

[ajc14]

Now the Insurance Company is saying that there are contigent beneficaries, I do not recall that ever happening. Doesnt that mean they can't claim the money unless I am deceased.

 

[Dandy Don]

More stalling from the insurance company. Get your complaint filed so that an investigation can begin.

DANDY DON IN OKLAHOMA ([email protected])