Life Insurance - incorrect beneficiary

[jansassic]

What is the name of your state? PA

My mother passed away March 9, 2006 - she had a life insurance policy from her company. My sister received a call from the insurance company the beginning of April stating that she was the sole beneficiary on the policy - My sister questioned this numerous times because we all thought my mother had listed all of us equally. The insurance company insisted several times that they were correct - my sister received the paperwork, signed it and returned it - she then received a checkbook for the insurance amount. Shortly after that my mothers husband (of 6 months) said that this was wrong - he changed the beneficiary on the internet to himself only. The insurance company called my sister and said that this was under investigation but gave no other information. Since then we have moved the money out of the account from the insurance company and have it in a seperate account - it has now been over 2 months and we still have not heard anything from the insurance company or my mothers place of employement. My mom lives in VA.

My first question - Can the beneficiary be changed via the internet - is that considered a legal and binding change?

How long should we wait before my sister can forward on the money to the other siblings - (this is what she wants to do since she knew that is what my mom would really want)?

Can the insurance company or employement or husband come after my sister for the money?

I appreciate your quick response.What is the name of your state?

 

[efflandt]

Just curious when her new husband changed her beneficiary on the internet? Was it "after" her death (that would certainly be disallowed)? Apparently the insurance company was unaware of it at the time they made the payout.

Maybe your mother did not quite understand what she was doing and listed your sister first, with each of the others as contingent beneficiaries instead each as equals.

 

[Betty]

Was her husband the owner of the policy? Only the owner can make a change on the policy such as a change of bene.

 

[Dandy Don]

What insurance company is this?

Husband should have kept a printout of the change that he made, if he was authorized to make such a change. And the insurance company should have had instructions on the website for the husband to send a letter to the insurance company that would verify IN WRITING his official intent to make the change.

However, what is the big deal here? The company has paid out the money and if sister wants it to go to the siblings, she can authorize that or anything else she wants--it's HER money. There seems to be no need for the insurance company to even be involved with this anymore. There would not be any reason for them to sue the sister to get the money back if sis explains that the money has already been distributed to the other siblings.

DANDY DON IN OKLAHOMA ([email protected])

 

[shell007]

What insurance company is this?

Husband should have kept a printout of the change that he made, if he was authorized to make such a change. And the insurance company should have had instructions on the website for the husband to send a letter to the insurance company that would verify IN WRITING his official intent to make the change.

However, what is the big deal here? The company has paid out the money and if sister wants it to go to the siblings, she can authorize that or anything else she wants--it's HER money. There seems to be no need for the insurance company to even be involved with this anymore. There would not be any reason for them to sue the sister to get the money back if sis explains that the money has already been distributed to the other siblings.

DANDY DON IN OKLAHOMA ([email protected])

I'm thinking DAD wants the money????

 

[Betty]

I'm thinking DAD wants the money????

I vote yes.
Note ins. co. still investigating claim per call to sister after they already paid money out to her - something strange going on here.

 

[shell007]

I vote yes.
Note ins. co. still investigating claim per call to sister after they already paid money out to her - something strange going on here.

Agree!!!

 

[justalayman]

I vote yes.
Note ins. co. still investigating claim per call to sister after they already paid money out to her - something strange going on here.

I don;t see it as odd. The insurance company is just making sure that the dad didn't (couldn't) do what he claimed he did. If the insurance company paid to the wrong bene, they would have every right to reclaim the money and distribute it to the correct bene.

I would suspect from the insurance companies actions that they do not neccessarily believe dad but need to investigate to avoid a legal fiasco.

I don;t think I would get too spendy until the insurance company gives a green light.


Another thing not disclosed here that would make a difference:
Did dad have a POA? The other questions posed already would need to be addressed as well for any meaningful answer. i.e when did he try to change the bene? Who was the owner of the policy?


I do hope this is a typo:

My mom lives in VA.

Since you started out with this:

My mother passed away March 9, 2006

 

[Betty]

By strange I just meant there was something (a problem) going on with the distribution of the money instead of a normal (no problem) distribution since the ins. co. is still investigating claim.
I do agree with you (as opposed to Dandy Don) that the money may not necessarily belong to HER (the sister). If the ins. co. made an "honest" mistake (error) in the distribution of the money, they would have the right to request the return of the proceeds from the sister. The ins. co. did call & tell the sister that the claim was still being investigated.