Contingent Beneficiary: What rights does he have?

Posted: Sat Apr 04, 2009 11:13 am Post Subject: insurance

How long its SD before he would turn 18?

Posted: Sun Apr 05, 2009 01:05 pm Post Subject:

Sd I was reading through the posts and was thinking that maybe you should split the primary beneficiaries. You can then include your friend, your son and your parents. I have seen people, even family, becoming very gredy when money is concerned. EVEN the ones you do not think would. How many times have we answered questions on here concerning people fighting for their share of money? Alot. You may save eeryone the tim and aggravation by just splitting up the money. This will insure your boy will get something. Just a thought. I know how important your son is to you.

Posted: Sun Apr 05, 2009 01:30 pm Post Subject:

When amount is really a remarkably large then it is advisable to set up a trust. because trust has trustee all the time even if somebody resigns or somebody passes away.

But when it comes to the beneficiary then it is really difficult to make right decision. There are several examples that the insured person, first beneficiary and the second beneficiary died in a single accident so in this case it is really a difficult situation and one can not assure that the benefits of the money is actually handed over to the concerned person.

But when the trust comes into the picture it has several number of trustees and they take care that the beneficiary gets the benefits of the policy.It is really very rare that all the trustees are no more due to some accident. :wink:

Posted: Sun Apr 05, 2009 07:34 pm Post Subject:

just putting my '2 cents in) On my Life Insurance policy I have a good friend of mine ( POA on other paperwork I have ) who is 'Primary' Beneficiary. My son and my parents are contingent beneficiaries. My 'Primary' lives pretty close to me. However..my parents live in another state.....so, I thought doing my Life Insurance this way was more practical.

Your friend gets everything. Your parents and son get nothing. Is that what you want to do?

Posted: Sun Apr 05, 2009 07:38 pm Post Subject:

"What would happen if the primary beneficiary dies soon after the policy holder passes away. Can't the contingent beneficiary claim for the benefits now?"

The contingent would not get a thing. All of the money will belong to the primary beneficiary.

Posted: Thu Apr 23, 2009 06:37 am Post Subject:

What if the primary beneficiary dies like 1 month after the money has been paid to them and before they can spend it, do the contingent beneficiries have a right to the money especially if the contingents were children of the primary?

Posted: Thu Apr 23, 2009 09:39 am Post Subject:

No. The contingent would still not get a thing. 1 day. 1 month. 1 year. 10 years. None of it matters. If the primary beneficiary dies after the insured, the primary beneficiary gets everything. This is true even if the primary beneficiary dies before the death claim is paid.

Posted: Thu Apr 23, 2009 10:03 am Post Subject:

Once the death benefit is paid to the primary beneficiary the contingent beneficiary status would get void. The money would then get attached to the estate of the primary beneficiary if (s)he dies soon after receiving it. The contingent beneficiaries wouldn't receive the policy proceedings.

The contingent beneficiary status is viable only if the primary beneficiary pre-decease the policy holder.

Thanks,
Rupert

Posted: Thu Apr 23, 2009 12:12 pm Post Subject:

The contingent beneficiary would be waived before this point.

Ex. Insured dies today. Primary beneficiary dies tomorrow. 6 months from now, the contingent beneficiary files a death claim. The contingent will get nothing. 100% of the money would get paid to the family of the primary beneficiary.

All that matters is who is alive at time of death.

Posted: Sat Apr 25, 2009 05:50 am Post Subject:

Oh okay thanks.