life insurance beneficiary: InsCompany states it has Company

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PostPosted: Thu Jul 30, 2009 8:33 pm   Post subject: life insurance beneficiary: InsCompany states it has Company  

GrievingSon,

life insurance beneficiary: InsCompany states it has Company as beneficiary.



Some background:

My father left the company back in 1981. As an executive of that company, the company took a whole life insurance policy out on him and took a loan out on that policy. When he left the company in 1981 he was given the option to pay off that loan and keep the policy which he did. The insurance company has the records of that taking place and the check was made directly to them. From that point on, he made the payments on the policy. For many years he has been receiving dividend payments from that policy. Here is the problem: He passed away and my mother contacted the insurance company to exercise the payment of the policy. They sent her paperwork to complete and there was a request for her to send in on the company letterhead and from an executive of the company to be able to pay out the policy. The company does not exist as it did back in 1981. This was large corporation that was overtaken, parts sold off and parts have gone through bankruptcy over the years. The company name was sold around ten years ago. Given this, we told them the company no longer exists. Now they are saying the policy states the company as the beneficiary. I have not seen the policy, but this make no sense at all. They said my father took over the policy but did not change the beneficiary. That is debatable, but at this time we have no written records. However, we do have a letter the insurance company sent him some years back in his request for the policy or copy of it. They stated he did not need a copy to make a claim and there was nothing over the years about the beneficiary. He had no contact with that company since he left in 1981.

The insurance company is now asking for company dissolution papers. I’m not sure those exist and have no idea how to get those papers if they do.



What do we need to do to resolve this?

If you need more information, please let me know.

Thanks for you help


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GrievingSon
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PostPosted: Fri Jul 31, 2009 1:22 am   Post subject:   

GrievingSon,



It sounds like your dad screwed up. He paid for a policy that wasn't going to ever pay the family. Your dad was the owner and the company was the beneficiary. He should have changed the beneficiary.



However, here is your saving grace. The beneficiary is the company. If there is some way to prove that the beneficiary (the company) is no longer alive, the proceeds will get paid to the default beneficiary. If there is a default beneficiary, it would be his wife or kids, or more likely, the owner of the policy (if alive) or the owner's estate.



The bottom line is that the money is going to go to your dad's family if the company doesn't exist.



I'd explain the situation to the insurance company and see what can be done.

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PostPosted: Fri Jul 31, 2009 2:23 am   Post subject:   

Thanks, that is were I think the insurance company is going with this, but they are not exactly upfront with information.

We have explained this to the insurance company but they want company dissolution papers. That sounds like some legal papers, however I do not know were to get legal papers stating such. There is a great write up on Wikipedia, but not sure that will suffice for them.

Link: http: //en.wikipedia.org/wiki/Datapoint


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GrievingSon
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PostPosted: Fri Jul 31, 2009 1:10 pm   Post subject:   

I don't know how you would get these papers or if they even exist. Try calling the insurance company. 1) Find out what you need to do if these papers don't exist or if you can't get your hands on them. 2) Talk to someone in their legal department. That person may have an idea of how to get your hands on those papers.



In this case, the insurance company isn't your adversary. They have no problem with paying the claim. They just want to make sure that it goes to the correct party. However, your dad's old company is probably the correct party if they still exist.

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