Mother insured newfew who had lived with us since 2 and is now 40. She has paid on the policy for 38 years and she recently passed. I am her Benificiary of her estate, per her will. When I contacted the insurance company, they indicated I had no rights to the policy since the insured was still alive that it automactically reverts to his policy. Can this be?
Mother had a policy on her nephew and recently passed. Now insurance company says that her nephew is now the owner of the policy. Can this happen?
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63333 POINTSview profilePeggy MaceMost of the U.S.This could happen if your mother's nephew was named as a contingent owner on this policy. She may have set it up that way just for a time like this, when she was no longer alive to pay the premiums. That way, he could then own his own policy and pay his own premiums. He would also then choose his own beneficiary.Answered on June 30, 2014flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNIt does depend upon the specific circumstances when the life policy was purchased 38 years ago. It is not unusual for this to happen on most policies on minor children. Your mother was the owner and her nephew the insured. If the owner dies before the insure, the life insurance company has no choice but to make the insured the owner. Your mother cannot name anyone else as owner, so I'm not sure without full cooperation of the nephew, this will remain the same. Life insurance proceeds are outside of the will.Answered on July 27, 2014flag this answer
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