Life insurance premium refund, dispute, etc.

[Louport]

What is the name of your state (only U.S. law)? Illinois
I lived with my mother all my life or 35 years until we were forcibly separated because of a real estate scam/ID theft in 2001. During the last 10 years we were together, I took care of most of her personal affairs. This included paying insurance premiums for a family plan, that included policies for my mother, me and several siblings. Sometimes I paid the premiums with her money, sometimes though I paid them with mine. This includes from April 2001when she was forced into the nursing home. She died in 2004 and I continued to pay the premiums to this day.
The problem: When my mother died, I wasn't even told until two weeks later, after she was buried. Copies of letters I sent to the insurance company were found at the nursing home. This led to estranged relatives claiming the death proceeds. My mother did not have a will. I guess I should have tried to have her put what you she often said in writing - "you get everything."
I didn't, and I guess I kept paying the premiums because of an emotional thing. I recently checked the status and the company told me that I have no right to any info. regarding the policies other than mine, even though I paid the premiums the pass eight years. OK.
So my question is who does have control of an insurance policy when the policy owner, the one who originated it, dies without a will? And shouldn't have that person paid the premiums? And how do I get my money back for the premiums on these policies I paid? The company said I can get the cash value for my policy but not the others, again, even though I paid the premiums. And should I stop paying the premiums while I dispute this with the insurance company? I am not even sure if the other people insured under the policy know that they are. They may have long gotten policies elsewhere.
Thanks for you help.
LouportWhat is the name of your state (only U.S. law)?

 

[justalayman]

So my question is who does have control of an insurance policy when the policy owner, the one who originated it, dies without a will?

if the policy was on her, the policy would pay out to the named beneficiary. If there was no named bene, it generally goes to the decedents estate and is treated as any other asset of the estate.


A

nd shouldn't have that person paid the premiums

shouldn't that person have what? Control? NO. A right to info? NO. The insurance company is bound by their relationship with the owner. If you believe you deserve something for making the payments, your claim would have been against moms estate.

And how do I get my money back for the premiums on these policies I paid?

If you have any right to claim them, it would be against moms estate. The insurance company has nothing to do with that.

The company said I can get the cash value for my policy but not the others, again, even though I paid the premiums

. and the problem with that is? You were listed as owner or bene on an insurance policy. That would entitle you to certain rights. If you were not a owner or bene, you have no rights concerning the policy.

And should I stop paying the premiums while I dispute this with the insurance company?

Unless you are the owner of the policy, i see no reason you would ever pay unless there was some agreement with the owner of the policy. If these policies are owned by somebody other than you, they need to be paying them. If mom was the owner, you need to speak with the insurance company to see if the ownership can be transferred to any other or if they have any value to moms estate.

They may have long gotten policies elsewhere.

you can have an unlimited number of insurance policies. No need to limit it to one.

This led to estranged relatives claiming the death proceeds.

Not exactly sure what you mean by this but insurance policies are paid to the named beneficiaries. The net value of the estate is supposed to be distributed by a will or by the laws of intestate succession of the resident state of the decedent. It is illegal for one to simply "claim the death proceeds" unless they are legally entitled to them.

 

[Dandy Don]

Who are the "estranged" relatives that claimed the proceeds--how were they related to the decedent? It is possible that they could have submitted a beneficiary designation change form to the insurance company using a power of attorney form (or without using the power of attorney) granted by her to them?

What was the payout value of the policy?

Did you check at the county courthouse probate court to see if an estate was opened for her and if perhaps this money was processed through the estate?

If no estate was opened up, you can either file a complaint with your state insurance commissioner to have this investigated or file to open up probate so that you as executor will have legal authority to get written responses to your questions about this from the insurance company.

Or hire a business law attorney to file a lawsuit against the insurance company or against the relatives who got the money if you can prove that they got it illegally.

DANDY DON IN OKLAHOMA ([email protected])