Taking ownership of policy setup by parents while a minor

[Cainlord]

What is the name of your state (only U.S. law)? ND

A life insurance policy was setup by my parents while I was a minor and its under my name. They currently still make payments on the policy. It shows up under my general insurance information (multiple policies like auto, home, etc) with my insurer.

As the policy is under my name but was taken out by them when I was a minor, do I have actual ownership of the policy or do they? If I decide to make beneficiary changes to the policy as well as take over payments, etc. What do I need to legally do to do this, if anything? Do I need to reimburse them for past payments made on this policy? (I was advised of this by my father)

 

[ecmst12]

The policy should say who the owner is. It does not have to be you. Your parents can own a life insurance policy on you, and in that case they decide the beneficiary. They did at the time, and likely still do, have an insurable interest, in that if you were to die, they would be responsible for the funeral expenses. If someone else owns the policy, it will never become yours unles they give it to you. If you want an insurance policy on yourself where you choose the beneficiary, you have to buy it yourself.

 

[Cainlord]

The policy is coming up as being owned by me as far as what the insurance company has said.

 

[anteater]

Call the insurance company and confirm that you are the owner. If you are, ask them to change the address and send any premium notices to you. And for a beneficiary change form.

Do I need to reimburse them for past payments made on this policy? (I was advised of this by my father)

Not under any legal theory that I know. But it might be a nice things to do.

 

[Cainlord]

thanks for the info.

 

[ErinGoBragh]

The policy is coming up as being owned by me as far as what the insurance company has said.

As an owner, or an owner designee?

 

[Cainlord]

They said owner

 

[ErinGoBragh]

They said owner

I know what they said, but typically there's paperwork involved in moving ownership of the policy from the former owner (parents) to a new owner (the insured). Paperwork which you would have had to sign. I would think you would remember filling this out, and the insurance company verbally telling you that you're the owner wouldn't cut it for me.

But, in case I'm wrong, proceed as you were told .

 

[xylene]

I know what they said, but typically there's paperwork involved in moving ownership of the policy from the former owner (parents) to a new owner (the insured). Paperwork which you would have had to sign. I would think you would remember filling this out, and the insurance company verbally telling you that you're the owner wouldn't cut it for me.

But, in case I'm wrong, proceed as you were told .

Um, there is no obstacle for the policy to have always been owned by the poster...

 

[ErinGoBragh]

Um, there is no obstacle for the policy to have always been owned by the poster...

He was a minor when it was taken out. Most insurance companies will not allow minors to own policies; you have to take ownership as the parent/payor and place the minor as owner designee, and transfer ownership at the age of 18 to the designee.