We live in CA and my father passed away and was the sole owner of a life insurance policy where I was the insured. Does CA 50/50 marriage law play into party when it comes to life insurance. Will the wife have access to this life insurance policy even though she is not signed on as contingent owner?
Does CA 50/50 marriage law play into party when it comes to life insurance?
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasGreat question! Insurance policies have three moving parts. The owner, the insured, and the beneficiary. The owner holds the right to changing the beneficiary; The insured is the person that the policy is taken out on; and the beneficiary is the person who gets paid when you (the insured) pass. Do you know who was listed as the beneficiary? That's what you really need to know. My understanding of the 50/50 law in your state as explained by a couple of lawyers, doesn't mean all debts or assets are necessarily split 50/50. I'd advise strongly that you ask the agent or company who holds the policy who they award the ownership to, and your lawyer. Good luck! Thanks for asking!Answered on April 22, 2014flag this answer
325 POINTSview profileRobert Bland, CLUFounder, CEO, LifeQuotes.com, Darien, ILJim's advice is spot-on here. The question and issue is so important that you should pay an attorney to advise you, especially given that 50% of the policy's proceeds might be at stake for you. You also mentioned in your question that your father passed away and that you were the "insured." I think you are the beneficiary and he was the insured. So that check that out with the attorney as well and make sure to get sound legal advice before your turn in your father's death certificate, so that there are no surprises. The life insurance company can also tell you if your father maintained sole ownership or if he ever added another owner.Answered on April 22, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaCalifornia is a community property state. The assumption is that the money used to purchase the life insurance policy comes from community property funds; therefore the spouse has half ownership of the insurance policy. Most companies will require that the spouse sign the application unless they are named as the primary beneficiary. I just had a man come in and do that.Answered on September 12, 2014flag this answer
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