Life Insurance Beneficiary

[mgmkitty]

What is the name of your state? California

This just doesn't sound legal or moral to me.
My grandmother has an insurance policy on me with her as beneficiary. I am 30 and married, we don't get along, nor am I at all financially dependant on her, nor is she on me. I have my own life insurance through my work with my husband as beneficiary. We really don't have much to do with each other. Is it legal for her to have this policy? What possible reason could she have?

 

[Dandy Don]

How long has she had the policy and how did you find out that she had it? What type of insurance is it--life insurance, burial insurance, etc.?

Have you asked her what her reason is for doing this?

Of course it is legal. If for some reason you or your husband would be unable to have your funeral expense paid, she could use the proceeds of the policy to help get that bill paid off, which is usually a relief to the family during a time of grief.

Did the insurance company contact you to let you know that the policy existed, which is sometimes normal procedure?

If you have any objections, contact the insurance company about this matter to get your questions answered. It may be possible to get it cancelled under certain conditions.

 

[mgmkitty]

It's a life insurance policy. She's had it for at least 10 years. The reason I wanted to know the legality of it is she also had a policy on my mother (which is natural I guess), she passed, and since I was next of kin, I had to pay for everything. She kept all the money. She didn't help me with any burial expenses or anything. I even lost my apartment because I had no money. (I lived with my mother at the time of her death)
My husband and I do not get along with her since my mother's passing, we have plenty of insurance but even if we didn't, we don't want anything from her. She wouldn't help anyway if something had happened to myself or my husband. As I said, she does not rely on us nor do we on her financially. We just didn't see any reason for her to have this policy. I know she will probably go first and I'm probably wondering for nothing, but it sickens me that she would "benefit" if something happened to me prematurely.

 

[Pfaffing85690]

It is not illegal to take out life insurance on anyone. Unless of course, you bring about the demise of that individual...

 

[mgmkitty]

It should be. It's not right. "Family" member or not.

 

[Ramoth]

So take a policy out on her, and hope you get your payoff before she does.