What Happens To The Policy?

[jmatos]

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

When one person lets suppose is a Mother is the owner and beneficiary of a policy on lets say her adult child, what happens when the Mother dies? Does the policy automatically convert to her daughter and she becomes the owner?

 

[Sophistry]

Is this a whole life policy?

This is a tricky situation. I would call or have your mom call the ins co and ask them. There may be language within the policy that transfers ownership of the policy to you upon her passing and you would then be responsible for the premiums. If there is not, it may end up in probate and pass according to her will. I am not a tax guru but there may be tax consquences depending upon how the money is transferred to you. I hope this helps to get you on the right track.

 

[Betty]

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

When one person lets suppose is a Mother is the owner and beneficiary of a policy on lets say her adult child, what happens when the Mother dies? Does the policy automatically convert to her daughter and she becomes the owner?

I see per a prior post of yours that you are an ins. agt. in Ar. I don't know if this is a general question or a personal situation.

If there is a contingent owner, they become owner. If not, it depends on the policy provisions. The daughter can "probably" become owner, name a new bene & pay the premiums. If the premiums aren't paid, the policy will lapse. You might call your ins. co. & ask/discuss.