how long does it take for a life insurance check to clear?

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Wed Jun 16, 2010 2:06 am   Post subject: how long does it take for a life insurance check to clear?  

My friend told me that her and her brother finally got a check from their dad's life insurance. This is the one where there was no one listed as she claimed. She said that this did not go into his estate and the half sister's attorney fedex her check. She said she and her brother deposited the check into their accounts and it's been 3 weeks and she said it still hasn't cleared. Is this possible that it takes that long? The checks were for 50k each. I thought it only took a few days to clear? I hate to say this, but is there is possibility that she's just saying this? Why would there be such a long wait?

sammy227
New member
Leave a quick message



Joined: 03 Jun 2010
Posts: 3


2.28 Dollars($)

PostPosted: Thu Jun 17, 2010 8:51 am   Post subject:   

If it takes time, you may ask the insurer to fax or email any information that they might need. I'd also make sure that there's no possibility of someone else producing the death certificate and trying to contest a legitimate claim. You must know the reason for this hold-up.

steven
Senior member
Leave a quick message

steven

Joined: 02 Feb 2006
Posts: 1546


215.89 Dollars($)

PostPosted: Thu Jun 17, 2010 11:03 am   Post subject:   

Quote:
it's been 3 weeks and she said it still hasn't cleared. Is this possible that it takes that long
Nope, way too long, even for a draft...something is a miss here...does she owe you money by chance?


_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Thu Jun 17, 2010 1:35 pm   Post subject:   

Federal banking rules establish the time limit within which a bank must clear a check. If it has been three weeks, the bank is violating federal law.



_________________

CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
MaxHerr
Forum Expert
Leave a quick message

MaxHerr
Forum Expert

Joined: 29 Nov 2009
Posts: 7331
Highets Points
Location: Pomona CA
60.59 Dollars($)

PostPosted: Thu Jun 17, 2010 5:46 pm   Post subject:   

She only owes me $100. When her dad died, he did not have a will. I just find her story hard to believe because from what I've read, if no beneficarary was listed on the life insurance, it went into the estate. She swears that it didn't. I just find her story to be really fishy.


_________________
Register Now to have your Insurance queries solved.
Guest







PostPosted: Fri Jun 18, 2010 10:33 am   Post subject:   

I agree...if it looks like a duck, walks like a duck, quacks like a duck..honey, it's a DUCK..



_________________

"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr.
Lori
Forum Expert
Leave a quick message

Lori
Forum Expert

Joined: 10 Sep 2007
Posts: 8080

Location: Missouri
287.93 Dollars($)

PostPosted: Sun Jun 20, 2010 3:35 am   Post subject:   

Ummm, usually life insurance companies don't send checks. They create an account, deposit the money into the account, and give the beneficiary a checkbook to draw checks against the cash in the account.



But yes, this is way too long for the check to clear, something isn't right.

BNTRS
Senior member
Leave a quick message



Joined: 05 Nov 2009
Posts: 848


15.71 Dollars($)

PostPosted: Sun Jun 20, 2010 4:08 pm   Post subject: insurance  

BNTRS.....that's information I didn't know. Life Insurance company deposits the money into an account? If the Life Insurance is a large sum of money, I can 'see' that. Is this 'procedure' done if you receive the 'cash value' from a Life Insurance policy, as well?..when you barrow aqainst your Life Insurance?

sdchargersfan
Senior member
Leave a quick message

sdchargersfan

Joined: 21 Aug 2007
Posts: 2052


5.14 Dollars($)

PostPosted: Tue Jun 22, 2010 2:22 am   Post subject:   

Quote:
Is this 'procedure' done if you receive the 'cash value' from a Life Insurance policy, as well?..when you barrow aqainst your Life Insurance?




No, if taking a loan against a life policy or taking a straight distribution the insurance company generally sends a check, or can make a direct deposit (sometimes wire transfers are available as well, but requires the recipient to pay wiring fees).
BNTRS
Senior member
Leave a quick message



Joined: 05 Nov 2009
Posts: 848


15.71 Dollars($)

PostPosted: Tue Jun 22, 2010 3:26 pm   Post subject: insurance  

Well.......I appriciate the answer. Thanks.

sdchargersfan
Senior member
Leave a quick message

sdchargersfan

Joined: 21 Aug 2007
Posts: 2052


5.14 Dollars($)

PostPosted: Tue Jun 22, 2010 10:35 pm   Post subject:   

If you want a check, they'll send you a check. It's often good to leave the company with the insurance company because they'll pay competitive interest while you decide what to do with it.


_________________
Register Now to have your Insurance queries solved.
dlfllaflri
Guest







PostPosted: Tue Dec 14, 2010 6:45 pm   Post subject: insurance  

Not all insurance companies open an account for you to withdraw money from. I recently received a beneficiary check and had it mailed to my home. It just depends on the case and State Laws. Rolling EyesVery Happy


_________________
Register Now to have your Insurance queries solved.
harleys-agirlsbestfriend
Guest







PostPosted: Tue Dec 14, 2010 7:16 pm   Post subject:   

Quote:
usually life insurance companies don't send checks. They create an account, deposit the money into the account, and give the beneficiary a checkbook to draw checks against the cash in the account.




If an insurance company sends you a check book, please let me know. There is currently a huge lawsuit being drafted for this sort of thing and you're more than likely going to get paid more money than you expect.


_________________

Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
InsInvestigator
Community Consultant
Leave a quick message

InsInvestigator

Joined: 13 Oct 2007
Posts: 618

Location: Central California
32.40 Dollars($)

PostPosted: Wed Dec 15, 2010 7:51 am   Post subject:   

Quote:
Ummm, usually life insurance companies don't send checks.




Looking back on this aging comment, I would generally disagree. Some companies do create a draft account, issue a checkbook, and charge a nominal fee for extra checks. But, that is more the exception than the rule. If a person did not want that, they could simply pack it up and send it back to the insurer and request a lump sum payment. Most insurance companies write death claim checks and relieve themselves of all future responsibility to the beneficiary.



What Mark Colbert is talking about is a bit more insidious. There are some companies that may be creating the "draft account" but then charging monthly fees that erode the money in favor of the insurance company.



That's plain wrong. The death benefit is entitled to go to the beneficiary(ies) without diminishment in value (other than, perhaps, the repayment of a policy loan and outstanding interest). For the insurance company to stick its thumb back into the pie is nothing more than greed in light of someone else's grief.


_________________

CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
MaxHerr
Forum Expert
Leave a quick message

MaxHerr
Forum Expert

Joined: 29 Nov 2009
Posts: 7331
Highets Points
Location: Pomona CA
60.59 Dollars($)

Quick Reply
Your Name
Subject
Message body
All times are GMT
Page 1 of 1


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 4.126 seconds.