Life insurance dilemma

[barn1]

What is the name of your state? Maine

My mother took out an annuity life insurance policy on me in 1980 for $250,000, she was the soul benficiary and it was paid off in 1990. I have not spoken with her since 1998 at which time I asked her to make my son the beneficiary. She told me she had borrowed all the money that was available from it and she would not change beneficiary. She likes to tell people that it was the best money she ever spent to take out that policy on me. I called Met Life (that is who it is through) and they refused to talk to me as they said I was not the owner of the policy. I obviously do not want her to benefit if something happened to me and leave my son with nothing. We have been estranged 95% of the time since I first moved out when I was 16 and she has no insurable interest in me. Is there anyway I can force her to cash the policy in? What are my options?What is the name of your state?

 

[Betty]

What is the name of your state? Maine

My mother took out an annuity life insurance policy on me in 1980 for $250,000, she was the soul benficiary and it was paid off in 1990. I have not spoken with her since 1998 at which time I asked her to make my son the beneficiary. She told me she had borrowed all the money that was available from it and she would not change beneficiary. She likes to tell people that it was the best money she ever spent to take out that policy on me. I called Met Life (that is who it is through) and they refused to talk to me as they said I was not the owner of the policy. I obviously do not want her to benefit if something happened to me and leave my son with nothing. We have been estranged 95% of the time since I first moved out when I was 16 and she has no insurable interest in me. Is there anyway I can force her to cash the policy in? What are my options?What is the name of your state?

Since your mother is apparently the owner of the pol. (Met said you weren't) - as the owner she has all the rights under the policy. She can change the bene (or leave it as is), take out a policy loan or surrender it for its cash value, etc. A mother is always considered to have an insurable interest in their children due to the close family relationship.

 

[barn1]

RE Betty

Since your mother is apparently the owner of the pol. (Met said you weren't) - as the owner she has all the rights under the policy. She can change the bene (or leave it as is), take out a policy loan or surrender it for its cash value, etc. A mother is always considered to have an insurable interest in their children due to the close family relationship.

Well Betty if I were to argue the point, the insurable interest due to the LACK of a close family relationship (or distant family relationship for that matter) is exactly the point I would argue......if you could disprove any relationship whatsoever then then would take away the insurable interest factor**************I'm not sure if this has ever been done but perhaps it has merit to set a precedent?? What are your qualifications you answered my reply with Betty?

 

[BelizeBreeze]

You cannot, by definition, disprove a familial relationship. and there goes your case.

You have no grounds to file any sort of lawsuit, but if you feel that 3 to 5 years of your life and a few Thousand in funds can be wasted, feel free.

 

[Betty]

BelizeBreeze - good reply.
barn 1 - for life insurance purposes a close (immediate) family member such as spouse, child, parent . . . automatically qualifies as having an insurable interest in each other's lives.

 

[Bigfoot]

Life Insurance Dilemma

The only contestable point might be your age when the annuity was taken out. For life insurance permission is needed from the insured. Can't remember with regards to permission for an annuity. And the contestability timeline is likely 2 years, like insurance.

The best consideration for you now would be how to purchase coverage on her life..since you're likely to outlive her..and you TOO have an insurable interest.

As rough as life might have been, for your son's sake you might consider being the bigger adult by finding common ground. Life is way, way too short.

 

[Betty]

For him to take life ins. out on his mother, she as the proposed insured & an adult, she would have to sign the application - she may not do this. OP - why don't you take ins. out on your life with your son as bene? (If your son is not an adult, you might consider a trust with a trustee as bene of the money for your son until he becomes of age.)

 

[barn1]

huh....

The only contestable point might be your age when the annuity was taken out. For life insurance permission is needed from the insured. Can't remember with regards to permission for an annuity. And the contestability timeline is likely 2 years, like insurance.

The best consideration for you now would be how to purchase coverage on her life..since you're likely to outlive her..and you TOO have an insurable interest.

As rough as life might have been, for your son's sake you might consider being the bigger adult by finding common ground. Life is way, way too short.

Well there you have it folks that is why I posted my question**************I already knew life was not fair but I think it is a travesty to see her collect on me while my son goes without.....FYI it is not about being the bigger person here, my mother and I shall never talk again. She is evil incarnate and if I could be a million miles away from her I would. A little foot note she bought and paid for the policy with a $3000 inheritance I got from my great grandmother in 1973 which she was entrusted with until my 18th birthday (1988) which she never disbursed to me. I went to a lawyer when I found out about it, I was 19 and because my mother wouldn't answer any questions about the assets of the trust and inheritance he would not take my case without a $5000 retainer to dispose her and get the ball rolling. He did tell me that I had a cut and dry case though but he could not take it on contingency without her cooperation in determining the monetary value of the trust. There my friends is justice for you**************it is all relative to what you can pay, or if you have the means to represent yourself. It was never my intention to sue her I just want my life uninsured by her......I want NO money out of the deal, she can cash it in and go to Hawai for all I care. Logic (not that it has anything to do with much) would still tell me that people make cases for estrangement all the time weather it be in a divorce or an emancipation....so logically speaking by presenting concrete facts to document your estrangement ( a nullification or deviation from the expected normal relationship) you should be able to make an excellent arguement. My "lay" 2 cents**************lol

 

[moburkes]

I'm chiming in a little late, but your words contradict yourself:

Originally, you wanted your son to be the beneficiary:

I asked her to make my son the beneficiary.

and

I obviously do not want her to benefit if something happened to me and leave my son with nothing.

Then you say:

I just want my life uninsured by her

..as if you want the insurance policy to be cancelled (therefore, still leaving no money to your son).

You and your mother do not have a relationship, and you would like to use that fact to have the beneficiary changed from the owner of the policy to your son. Even if it was found that she should not had been able to take out the policy, the insurance company only has 2 years to prove material misrepresentation, and apparently that time has passed. Some insurance companies would allow her to take out a life insurance policy on her grandson, and she wouldn't even need your permission to do that.

Also, as was stated before, the chances are, that your mother will die BEFORE you, in which case, you will probably become the owner of your own policy. At that point, you can change the beneficiary.

You can also purchase your OWN policy on yourself, with your son as the beneficiary.

You are stating that you want your son to be the beneficiary of an "illegal" life insurance policy. But, if the policy was taken out based on fraud, that still wouldn't make your son the bene, it would simply prompt the insurance company to cancel the policy.

In any event, the only way to guarantee your son $ in the untimely event of your death, is to purchase a life insurance policy on yourself, even if its just an inexpensive policy through your job.

 

[barn1]

your right**************

obviously I just do not wan't her to collect on my demise......realistically she will never make my son the beneficuary and in lieu of that I want it canceled.....either or is fine by me**************.I did contradict myself but I hope this clarifys**************realistically in my financial position I will be spending $20 per month to get the same coverage that is already free with regards to my son. In any event I desire no gain for myself (giving that I have to die to generate any revenue) **************I would like a little justice in a system where we can not leave it to those partys involved to deliver any......

 

[moburkes]

You said yourself that you are looking for something for free. I understand when you say that she used money that did not belong to her to start the policy. But, she paid on it for 10 years, apparently using her own money. So, had she not paid on it, the policy would have been cancelled. Since she did pay, and is the legal owner, she has no obligation to do anything that you ask. And technically, you don't even know if the policy is still active. Since she removed most/all of the value, the policy has either no or little value.

 

[barn1]

I should have**************.

I should have explained better, all the payments for the policy were paid by my funds (long story) but one that is documented in concrete after my mother and father divorced and my father finally told the facts......she dosen't have one dime into any of it**************...I'm not looking for anything other then to be left alone and not have my death exploited for anothers gain **************...that's all**************.seems reasonble dosen't it?

 

[moburkes]

How did a $3000 inheritance turn into a $250,000 annuity? Are you sure that this was an annuity? Could it have been a regular life insurance policy? I still don't see how $3000 paid for a $250,000 whole life policy?

 

[barn1]

ok...here it is

It was definetly an annuity......my mother bought 3 that year, one for me, my sister, and my father......conspicuously none for herself. Anyway back to the facts......In 1980 my Grandfather had kept the $2500 (inital inheritance form 1973 until then) wrote my mother a check for $3000 (principal and interest which I have a canceled copy of the check), the idea was she was gonna invest it and give me way better then bank interest (even though rates were around 17% at the time)**************my father and her bought a rental home, owner finance at 19 Spring Street , Newport Me with $1500 down (documentable) ...they rented it for $200/month for the next 10 years and paid the premiums of the annuity policy with the left overs ($75/month), on the 10th year they owned it, it burned down, the insurance proceeds were 35k and they kept the land.....they hauled in 2 mobil homes and put them on slabs which they rented for the next 6 years for $450/month each**************..then right before they divorced they sold the trailers for $40,000**************net effect to me "zero".....I have never taken squat from them nor do I want anything......I just want my life uninsured.....I have paid every dime for anything I ever had. The only reason I ever found out the details of what happened was because of the divorce and my grandfather getting in a fight with them. Fine ,so be it. I can document everything I say and have kept meticulous records dating back to 1973. I know my story sounds crazy, it is, but it is all true. I've spent a life time having those I told about it looking at me like I had 2 heads**************I can suck that up but someday I would like some justice and to be uninsured.

 

[moburkes]

Nowhere in your response do you show how 1. this check that your grandfather wrote to your mother is an "inheritance" that can be documented. You changed the amount from $3000 to $2500. You still don't explain how that $2500 or $3000 purchased an annuity. You only talk about other things that are separate from an annuity.