Can life insurance policy be changed once the owner dies?

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PostPosted: Mon Sep 14, 2009 9:18 pm   Post subject: Can life insurance policy be changed once the owner dies?  

My grandmother purchased a policy on me which is paid in full. She died last year. I received a copy of the policy & was shocked, when I found my mother listed as the beneficerary and my step father, "who also was the agent who sold her the policy years ago" listed as the owner. The policy was changed shortly after she passed away. I do not have a good relationship with either. Is this legal? I thought that after she passed I as the insured would have became the owner.


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Robomyp
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PostPosted: Mon Sep 14, 2009 9:48 pm   Post subject:   

Life insurance is considered and asset just like anything else a person owns. The owner of a policy directs who the new owner is when they die. If no succession is given by the owner then the policy will move to the owners estate and be changed appropriately. Maybe your step father was named in your grandmas will or was appointed by the court when here estate was distributed.
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PostPosted: Mon Sep 14, 2009 11:22 pm   Post subject:   

The policy was changed after her death. I know for a fact he was not named the estate distributor. I guess my question is if the policy was not listed in the will and she passed, does the policy automatically belong to the insured or not?

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PostPosted: Mon Sep 14, 2009 11:49 pm   Post subject:   

Shoot. My post disappeared. A policy will never automatically belong to the insured. If the owner dies and it's not listed specifically in the will, it will be split like any other non-listed asset. For instance, if your grandmother's will said that everything goes to your step-dad, your step dad would get the policy.



Are you positive that it was changed after her death? Look at the original application which will be in the back of the policy.



My GUESS is that your step dad has always been the owner and your grandmother was simply the payor.

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PostPosted: Tue Sep 15, 2009 12:58 am   Post subject:   

O.k. Last Question-

There is no conflict of interest, with him being the agent that sold a policy and then latter became the owner of the policy? Is there not ethics related to insurance. I'm a nurse and this would never float!

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PostPosted: Tue Sep 15, 2009 6:13 am   Post subject: owner  

First of all, how old were you when the policy was written?Unless you were under age, you should have had to sign the app. making your step father the owner. Are you wanting to cash this policy in?? If so it may be a good thing that it was written this way.

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PostPosted: Tue Sep 15, 2009 10:06 am   Post subject:   

Quote:
There is no conflict of interest, with him being the agent that sold a policy and then latter became the owner of the policy?




Why would there be any conflict at all? If your grandmother's wish was that it should go to him, then I see no harm in it.

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PostPosted: Tue Sep 15, 2009 12:35 pm   Post subject:   

I was a child when policy was written. No I dont want to cash the policy out. She did not give him the policy. And he will keep the policy and not burry me with it!

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PostPosted: Tue Sep 15, 2009 8:54 pm   Post subject:   

Who is the beneficiary?

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PostPosted: Tue Sep 15, 2009 9:49 pm   Post subject:   

My Mother, his Wife.

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PostPosted: Tue Sep 15, 2009 10:07 pm   Post subject:   

Well if he is not the beneficiary then he can not necessarily determine how the proceeds are used. Meaning your Mom will have control of the money when you pass. The only issue i see is the fact that he could cancel the policy before you die if there is some cash value to be had or he does not want to pay the premiums. If it is a premium issue then you could offer to take over the policy as the owner and pay for the premiums...if there is no cash value I don't see why he would mind. The other issue is if the policy was transferred after your Grandmother passed then there is some document or reason it was transferred to him....it was either in her will or maybe distributed by the court or maybe he was appointed to distribute the assets. In any case there is some documentation and if you do not agree with the way it was done you may be able to contest the estate.

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PostPosted: Tue Sep 15, 2009 11:08 pm   Post subject:   

The Premium is payed in full. I'm awaiting papers from the life insurance company, to find out how it was changed. It will take 3-4 weeks before they arrive.

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PostPosted: Tue Sep 15, 2009 11:42 pm   Post subject:   

Please let us know how it turns out.

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PostPosted: Wed Sep 16, 2009 1:05 am   Post subject:   

Definately will do!

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PostPosted: Wed Oct 21, 2009 7:28 pm   Post subject: You will never believe!  

My husband stepfather aka the insurance agent had forged my husbands name last year making himself the new owner. Want be hard to prove b/c he also signed as the witnessing agent. The charge as of now is Theft by Fraud. He should be arrested this week.

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