My Dad Bought A Life Insurance Policy For Me, Unbeknownst To Me. Do I Have To Make Payments On It?

My dad bought this life insurance policy on me, then he died. I only learned of this policy when I was going through his papers. I had no idea. I notified the company, and tried to make some payments. I am unemployed, and couldn’t afford the payments, so I told the company many times, to cancel this policy. They haven’t, and now are harassing me about being ‘behind’ in payments. They call me a lot. This is ridiculous. I didn’t buy this policy, nor do I even want it! How can I get through to them? (Globe life, if you’re curious)

  1. 3998 POINTS
    Matt Benore
    Founder, DenverWest Insurance Professionals, Inc.,
    There are a few things you need to be aware of.  First,  if your over 18, you have to sign the application for life insurance.   If it was purchased prior then your signature is not required. 

    When the policy was issued, there was a payor identified other than yourself.  If he turns the ownership over to you, then you have to decide if you want it.  If you don't,  then you do not have to pay pay for it however be aware the policy will lapse.

    Find a local broker to look at your current policy if you are not sure what you have and what the options are.
    Answered on January 23, 2014
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  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    If you don't want the policy any more, you don't have to keep it, and you don't have to make payments on it. They can send you all the notices they want, but no one can take you to collections for life insurance. If you quit paying on it, the policy will lapse. It is your choice.
    Answered on January 23, 2014
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  3. 1330 POINTS
    Mark Taylor
    Licensed Life Agent, Life and Finance/ 50 States, New York
    It seems that your father bought an insurance policy for the purpose of you to have a policy of your own when you are no longer dependent under him. The decision will rely on who bought the policy and who was designated to pay for the policy which should have been your father since he opened up the policy. On the application will ask who is owner of policy and who will pay the premium.

    In insurance dependents are children of parents 25 and under. When a policy is taken out on child by a parent they receive lower rates, or even a rider which is an additional form that will cover all child dependents no matter the number until the age 25. Once at that age they can become insured on their own policy at a guaranteed issue no matter what.

    In your case, you was not owner of policy, and you did not take over the policy. You dad owned the policy since he was the pay or even if the policy was written on you. You should have officially signed applications to own the policy, and it turned over to you. So, if not they have no course for action, since, you did not own the policy. You owe them nothing and you may cancel unless you voluntarily took over ownership. You may still cancel the policy anytime you desire. It also seems you have no beneficiaries. Also he may have taken the policy out on you in order to insure you in the event something happens to you which will relieve the financial burden upon the family.
    Answered on January 23, 2014
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