Contingent Beneficiary: What rights does he have?

by Guest » Tue Mar 31, 2009 11:56 am
Guest

I’m interested to know how the position of the contingent beneficiary is described in a policy. What are the rights of contingent beneficiaries? If the contingent beneficiary is a minor, how the proceedings of the death benefits would get affected?

Total Comments: 73

Posted: Sun Jun 26, 2011 12:06 pm Post Subject: Life Insurance

my mother listed myself and my brother as primnary beneficiaries on her life insurance policy.She passed away 2 months ago and although I have the original copiy of the policy and informed the insurance company of that, and I filled out akll the paperwork, they just issued my brother a check for the entire amount, and told me he promised to distribute the money.she split 20,ooo dollars between myself and other siblings and kept the rest for herself. Is htere anything I can do?

Posted: Mon Jun 27, 2011 08:02 am Post Subject:

they just issued my brother a check for the entire amount, and told me he promised to distribute the money.she split 20,ooo dollars between myself and other siblings and kept the rest for herself. Is htere anything I can do?



You can tell the truth, that your brother was the sole beneficiary.

No insurance company pays money to one person who "promises" to do anything with the money. When they wrote the check to your brother, it was because there was no other beneficiary listed.

she split 20,ooo dollars between myself and other siblings and kept the rest for herself.



Who is "she"? Your mother or your brother? This statement makes absolutely no sense. Your mother cannot split the money and keep the rest for herself -- she's dead. Your brother probably is not a she. And your opening statement was that your mother listed you and your brother as primary beneficiaries. There would be no "splitting" of the death benefit with anyone else unless all were named as primary beneficiaries.

When you have your story straight, we'll be happy to take another look at it.

Posted: Wed Sep 28, 2011 10:25 pm Post Subject: primary beneficiary on life policy rights

my wife was named the primary beneficiary by her friend who also left her sons and daughter (heirs) as the primary beneficiary on another policy. My wife had loaned her friend money to buy a home and is still owed part of the money. We assume, her friend left her money to cover her loan if she died. The value of the policy exceeds what my wife is owed and the heirs think they should get the proceeds from the policy left to my wife in addition to the money that my wife's friend left them. This is California and the insurance company is trying to get my wife to back off her claimm but if she is the beneficiary to this policy, isn't she entitled to all of it?

Posted: Thu Sep 29, 2011 01:48 am Post Subject:

This is California and the insurance company is trying to get my wife to back off her claimm but if she is the beneficiary to this policy, isn't she entitled to all of it?


You are correct. The policy proceeds go to the primary beneficiary unless that person is legally disqualified, which your wife most likely is not.

If the insurance was to cover a specific debt, rather than naming your wife the beneficiary, your wife should have been given a "Collateral Assignment" of her interest in the policy as secured by the debt owed.

If an agent was involved, he/she should have counseled the policyowner to name someone other than your wife as the beneficiary. That way the excess proceeds would go to the primary beneficiary. If the debt was paid off prior to the death of the insured, then your wife would have executed a "Release of Collateral Assignment", and the primary beneficiary would be in position to receive 100% of the proceeds following the insured's death.

But since that did not happen, 100% of the proceeds are payable to the primary beneficiary. If that's your wife, no one can interfere with the transfer of the money from the insurance company to her . . . including the insurance company.

You can contact the CA Dept of Insurance for assistance with this if you'd like: http://www.insurance.ca.gov/contact-us/0200-file-complaint/

Posted: Mon Nov 14, 2011 11:19 pm Post Subject:

What if the primary beneficiary cannot be located (has not been heard from for 24 years) but the contingent beneficiary are located, is it possible for them to have the benefits or does the primary beneficiary have to be found or deceased before the policy can be released?

Posted: Tue Nov 15, 2011 03:34 pm Post Subject:

START A NEW THREAD TO GET ANSWERED BY AN INSURANCE EXPERT.

I think the primary beneficiary needs to be proven dead or legally disqualified to received the benefits, then only the contingent beneficiary can receive the payouts.

Posted: Thu Nov 17, 2011 05:24 am Post Subject:

Yes, unless it can be proved that the primary beneficiary has predeceased the insured, the money will eventually escheat to the state, which will hold it until it may be rightfully claimed.

Posted: Thu Nov 17, 2011 05:51 pm Post Subject:

The contingent beneficiary actually works as a backup beneficiary. This is to make sure that when the something goes wrong with the primary beneficiary, the next person whom the insured wanted to have the benefits, does get it without it being shared by other people.

Posted: Thu Nov 17, 2011 07:26 pm Post Subject:

when the something goes wrong with the primary beneficiary,


The most common "something" that affects the primary beneficiary is death. Criminal involvement in the death of the insured is another "something" that can occur. There are a couple of other legal disqualifications, but those are the top two.

Posted: Sat Sep 01, 2012 05:00 am Post Subject: Contingent beneficiary

My brother Dermot Quinn passed on 6/18/2012. He named my brother Steve as a beneficiary on a 3000.00 annuity. Steve had died in 2010. Dermot never changed the beneficiary form. Dermot died in Nevada. What are my rights as we are all family? Thanks

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