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 Posted: Sat May 09, 2009 6:29 am Post subject: Collateral assignment-Cash value as security for policy loan |
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exwife collateral assignment on deceased x-husband's Life Insurance..judgment satisfied x-husbands intent to follow up with release..advised by his attorney did not compy for over 7 years. X-wife remains beneficiary Insurance company will not release funds to current wife. perhaps there was no interest on x-husband to release as there was an on- going alimony obligation. Thoughts on the beneficiary collateral assignment information is appreciated.
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| Posted: Sat May 09, 2009 9:18 am Post subject: |
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Well, I think when a life policy is assigned as collateral against loan then upon the death of the policy holder the death benefit would go towards the repayment of the loan. Therefore, the money would go to the lender first and the remaining (if there is any after paying the lender) would go to the beneficiary of the plan. If the current wife isn't the named beneficiary of the policy no money would come to her.
However, the experts too would share their views regarding exwife collatoral assignment. Therefore, hang tight.
~Jeremy |
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JeremyHolter
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| Posted: Sat May 09, 2009 6:54 pm Post subject: exwife collateral assignment |
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Jeremy, you are right on target. Was the creditor actually named on the beneficiary collateral assignment information? That would normally be the case. This would give the creditor the right to seize the cash value serving as collateral for the loan. In the event of either default on the loan or on the policy, the creditor would have first rights to the cash value. In the event of the death of the insured, the creditor would normally assume the position of primary beneficiary.
I'm confused as to your OP...it sounds as if your husband's attorney, for some reason, was telling your husband to wait out some statute of limitations on the debt, and at that point, the creditor can't go after you. Ruined your credit, but it sound like you escaped the loan. As well, has the death benefit actually been paid? And if so, to whom?
If you could give us some clarification, we might be able to assist. I'm still a bit confused as to what actually happened.
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InsTeacher
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| Posted: Mon Aug 17, 2009 12:13 pm Post subject: Claims - Husbands life insurance |
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My husband is in ill health and we are in a lot of debt. A lot of the debt is with the same company that holds his life insurance. A car has been respossed that was in his name, a signature loan in his name, an equity loan in both names, a credit card in his name.
In the event of his death, would they have a claim on the life insurance? It is just straight life.
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Judi
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| Posted: Tue Aug 18, 2009 1:40 am Post subject: life insurance |
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Ok...here's one I just don't know!!  If you have a Life Insurance policy that builds 'cash-value', if you want that 'cash' for it, is that considered a loan AQAINST your Life Insurance? Can you use either 'Term' Life or 'Whole' Life, etc? |
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sdchargersfan
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| Posted: Sat Sep 11, 2010 3:52 pm Post subject: Have life ins will sign beneficary |
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Is there anyone who makes loan if life insurance is signed over as them as the beneficary.
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moha1986
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| Posted: Sat Sep 11, 2010 5:32 pm Post subject: |
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Yes. However, you still have to be loan worthy. Life insurance is typically used when the entity making the loan expects to be repaid, but knows that repayment won't/can't be made if death occurs.
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fakfaur
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