Policy Owner Dies - No Will

[WinoBlues]

Real story. My friend was married for 27 yrs. He had a $2 mil 30 yr level term. He made his loving wife the owner. They got divorced. He called the insurance company 20 times to get them the cancel the policy. He argued she had no insurable interest now that they were divorced. They said he had to get a court order to change anything and they said the chance of that was slim to zero. The owner controls everything. That would suck for your ex wife you despise to collect proceeds on your death.

We are paying a claim now to an ex. My understanding is it was a bad divorce and he and the new wife hated the ex. The Ex was the owner, payor and Beneficiary. Game set match.

The other side of that is when an ex husband is the owner and the ex wife continues to pay the premium not knowing he changed the bene to the new honey. Make for a tough conversation when the ex calls in to file a calim

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[BeeSelective]

Isn't a life insurance policy a contract? Does it have provisions as to who the new owner might be in the event an owner, who is not the insured, dies? Now va has some laws concerning spouses and beneficiary in event of divorce. Generally a life insurance policy controls ownership, or should have been included at issue. One advantage of a life insurance policy is to avoid these complications. People must think they gonna live forever!!!

 

[TampaHound]

We are paying a claim now to an ex. My understanding is it was a bad divorce and he and the new wife hated the ex. The Ex was the owner, payor and Beneficiary. Game set match.

The other side of that is when an ex husband is the owner and the ex wife continues to pay the premium not knowing he changed the bene to the new honey. Make for a tough conversation when the ex calls in to file a calim

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I am go through a divorce now. My ex demanded at least 10% of my life insurance policies.

The lawyers are making it more complex than it really needs to be in my opinion. I don't see why I just can't her as a irrevocable beneficiary at 10%. Simple and done.

You should have seen my lawyers face when I stated that.

 

[WinoBlues]

I am go through a divorce now. My ex demanded at least 10% of my life insurance policies.

The lawyers are making it more complex than it really needs to be in my opinion. I don't see why I just can't her as a irrevocable beneficiary at 10%. Simple and done.

You should have seen my lawyers face when I stated that.

An attorney client asked me to find a decreasing term policy for a husband that did not want to leave "that bitch" a dime more than he had to. The premium was more for the DT than a level or laddered plan. He did not care. They were both lawyers.

 

[scagnt83]

I am go through a divorce now. My ex demanded at least 10% of my life insurance policies.

The lawyers are making it more complex than it really needs to be in my opinion. I don't see why I just can't her as a irrevocable beneficiary at 10%. Simple and done.

You should have seen my lawyers face when I stated that.

Good idea, but won't cut it if she wants it guaranteed.

As the Owner, you could just cancel the policy. Doesn't matter who the Bene is on a lapsed policy.

 

[myinsurebiz]

This is why folks need a Will. Also a reason why the Insured needs to be the Owner too . . . There needs to be a contingent owner specified . . .

 

[goillini52]

This is why folks need a Will. Also a reason why the Insured needs to be the Owner too . . . There needs to be a contingent owner specified . . .

There's usually a reason why the insured's not the owner...like he can't pay the premium.

 

[WinoBlues]

This is why folks need a Will. Also a reason why the Insured needs to be the Owner too . . . There needs to be a contingent owner specified . . .

Have you thought about offering Prepaid Legal to all your high net income clients?

 

[myinsurebiz]

There's usually a reason why the insured's not the owner...like he can't pay the premium.

True . . .

Have you thought about offering Prepaid Legal to all your high net income clients?

Ha - PPL another Billion $$ Company . . . But - I don't have rich clients yet. Now - TraderTom may change that . . .

1 thing certain - have to wear "tropical" attire for the infomercials . . . Can you see it?

 

[scagnt83]

This is why folks need a Will. Also a reason why the Insured needs to be the Owner too . . . There needs to be a contingent owner specified . . .

A Contingent Owner specification would override a Will. And if the Insured is the Owner, then having a Contingent Owner is pointless.