Life Insurance/Minor Holds?

[PrincessMarie22]

What is the name of your state? Pennslyvania.

I was recently the beneficiary on a life insurance policy. When I first submitted the claim, it was approved and the company, Lincoln Financial Group, set up an intrest barring money market account "Secure Line" Into which they deposited my funds.

At the time, I was still 17, so the company put "Minor Holds" On my account. When I turned 18, I called the company about having these blocks removed, so I could have access to my funds. They told me to just send in my birth cerificate and as soon as they recieved it, the blocks would be removed.

It has now been a month! The company still refuses to remove the blocks. I call them every day and they say they are "investigating legal matters" and it could take a few months!

I just don't understand how they can with hold my funds like this. Is it legal? The claim has been approved and I am 18.

Please help, I need money to pay my bills! Its hard with both my parents dead, and this really isn't fair.

Thanks,
Marie

 

[ALawyer]

If the claim has been approved the legal hold should have been removed immediately after review of the birth certificate (assuming you are not in a state that requires a person to be 21 or unless the laws of such a state govern distribution).

My suggestion is that either you should IMMEDIATELY WRITE to the company people you have been talking to and cc their General Counsel and ask precisely what legal question they are reviewing that has caused the funds not to have been released to you so that you can review the matter with YOUR lawyer, OR even better have your lawyer contact the insurance company and let her/him ask.

What comes to mind is the possibility that they think they paid the claim in error, or that another claimant has appeared, or they do not have a good procedure in place with the outside account administrator (either Bisys or Northern Trust) to get the deed done fast, and thus blaming it on "legal" is a stupid excuse -- and potential bad faith.