Went threw this with foresters . They wanted a copy of death certificate and wanted copy of will and some type of court papers to change owner . It was crazy. The policy basically becomes worthless when the owner dies . The insured can never do anything with the policy as he’s not the owner . How do other’s handle this on kids policy’s when the owner dies? Do any co’s have a contingent owner transfer if the owner dies? This is a huge flaw . Any co’s allow easy transfer of ownership if the owner dies?
There’s a flaw in selling kids whole life policy’s. What happens when Grandpa dies?
- Thread starter DonP
- Start date
- 3,992
Omaha has a waiver of premium built-in to the child whole life to accommodate change of ownership during these situations
- 2,624
No, it doesn't. You're contradicting yourself.
So, there is a process with the life insurance company for changing ownership. The estate just has to be probated so that any of the deceased's assets (including the policy) can be transferred.
If there's a will, the person nominated as representative of the estate needs to go to court and get the court papers confirming the appointment. If there is no will then whoever inherits under intestacy does it.
Or you can just work with a company like MassMutual that lets you assign a contingent owner.
- 16,887
I know the old Monumental (now TransAmerica) policies my dad bought on us kids when we were born automatically changed ownership to us when we turned 18. The problem was dad never was told that and kept paying the premiums until he was 80 years old and I FORCED him to cash surrender them. The one he had on me was $500 death benefit and $480 cash value. The premium was like 80 cents a year.
When I finally convinced him the $480 was better in his pocket while he was living than $500 would be in mine when I dead, we called them up and guess what? They can’t talk to him because he wasn’t the owner. Lol
Boy he was pissed. They sure didn’t mind taking his 80 cents every year.
When I finally convinced him the $480 was better in his pocket while he was living than $500 would be in mine when I dead, we called them up and guess what? They can’t talk to him because he wasn’t the owner. Lol
Boy he was pissed. They sure didn’t mind taking his 80 cents every year.
- 2,624
A good argument for reading and understanding your insurance policies when you buy them.
- 10,330
Do a contingent owner. Or a co-owner.
Co-Owner won't work. When one dies, you still have the same problem with his portion of the policy unless you can include the phrase, 100% ownership to the survivor.
- 10,330
Good point.
- 24,979
Doing one currently - In this case, the insured is now an adult. He and his sister each need to simply sign a statement of successor owner form with a notary. Also, change Bene.
I have seen also where the executor has had to sign off.
A minor could complicate things. I remember one where the now-divorced parents both wanted ownership. I do not recall what happened. I left it to the company to deal with at that point.
I have seen also where the executor has had to sign off.
A minor could complicate things. I remember one where the now-divorced parents both wanted ownership. I do not recall what happened. I left it to the company to deal with at that point.
