Does a life insurance policy have to be revealed to anyone

Submitted by lifegoeson on Wed, 10/22/2008 - 19:55

Does the life insurance policy have to be revealed to anyone other than the sole beneficiary? Can it be taxed? Thank you any info or links --are appreciated. Having a hard time finding info. Maybe I am not asking the right questions.

Posted: 22 Oct 2008 08:22 Post Subject:

Life insurance needs only be signed by the insured. He/she can name a beneficiary without the beneficiary ever knowing about it.

All proceeds from life insurance are tax-free.

Posted: 22 Oct 2008 09:11 Post Subject:

life insurance is great beacause the benificiary receives the money tax-free

and really they don't have to be notified if you don't want them but you do have to sign for it

Posted: 23 Oct 2008 12:16 Post Subject:

Wish I said that

snot... :wink:

Posted: 23 Oct 2008 05:03 Post Subject:

and really they don't have to be notified if you don't want them but you do have to sign for it

Who? The beneficiary?

Is it possible for any third party to decide not to inform the beneficiary about the receivables?

Sorry, but this part is not very convincing to me. Would you explain it little more for me, FarmAHam?

Posted: 23 Oct 2008 09:14 Post Subject:


weeeeeeeeeeeee (sorry don't know how to really spell it... :roll: )

Posted: 23 Oct 2008 11:26 Post Subject:

I'm lost...I don't think the insured has to tell anyone squat...thats why everyone is always asking that age old question "How do I find out if they had life ins".

Posted: 23 Oct 2008 11:29 Post Subject:

you're not lost that's exactly correct...

Posted: 23 Oct 2008 02:18 Post Subject:

Ditto. The insured sits down with the agent. The insured appoints the beneficiary and the agent notes it on the application. The insured signs the application. The insured takes all the meds test. The insured has the poilcy delivered to them.


I have had cases where the insured doesn't want the beneficiary to know right away. In once instance, he specifically said that he wants the money going to his "responsible" child; not his deadbeat kid. I asked if he thought that would cause a problem when he passed away, his reply was,

"What do I care, I'll be dead."

Brutal...but honest.

Posted: 23 Oct 2008 03:01 Post Subject:

weeeeeeeeeeeee (sorry don't know how to really spell it... :roll:


Posted: 23 Oct 2008 04:21 Post Subject:

I appreciate all the quick replies and light humor.

Here is what I meant to ask... Since I am "the only responsible child" and sole beneficiary of (Mothers) life ins policy, can this be kept confidential??
Otherwise, the deadbeats and flies will be coming out of the woodwork.
Thank you

Posted: 23 Oct 2008 04:48 Post Subject:

No one will know unless you or your mom tells them.

Now, when your mom passes, I can guarantee you will be contacted by others because they know you are the "responsible" one wanting to find out if there is a policy.

Posted: 23 Oct 2008 08:40 Post Subject:

Oh believe me there will be plenty "deadbeats" crfawling out of the name it.. My first hubby never had so many friends until he died. The instead of going away and letting me try to move on I had all kinds of "requests" I sure would like to have....
Never got them far since we had to sell almost all the extras to pay for cancer treatments.
Best thing to do here is just prepare will have a lot to deal with when this does happen so getting prepared in advance for "deadbeats" and how to get rid of them would be a good idea.

Posted: 23 Oct 2008 09:15 Post Subject:

ohhhh I can keep my mouth shut... ;-) Just didn't know if I had any obligation to tell. If she wanted them to receive part of the life ins. she would have named them. They are no help to her now and I don't expect help after she's gone. what they don't know won't hurt them.
Thank you.

Posted: 23 Oct 2008 09:21 Post Subject:

If I can make a suggestion...

In her will/estate/etc, she might want to purposely exclude the "irresponsible" ones by name. In one of the estate planning sessions in which I was involved, the customer purposely wanted to leave two children out of the will/proceeds from life insurance. The attorney suggested a simple one line addition, "I am purposely excluding _______ and _______ from receiving anything from the will and have also purposely excluded them from any proceeds from my life insurance policy."

The reason for this was so if they still wanted to contest (mental incapacity, etc), there would be no question that he knew exactly what he was doing - in fact, he even purposely mentioned (excluded) it in the will.

Posted: 23 Oct 2008 11:46 Post Subject:

Hey I know what life is speaking of. My dad had his will made out years ago and he purposely excluded one of our half brothers. Put it right there in writing that he was purposely excluding him. dad'd not a mean person ...just had really good reasoning for doing this.

Posted: 24 Oct 2008 12:13 Post Subject:

He's dead right (pun intended)...we've all been there, I too have seen this 'save' the estate from the excluded ones...My grandpa, left two 'bad' grandsons (who's father was his son and died young), 100 bucks each with a line kind of along the line of, "It is my intention that Douglas and Derrick receive this 100 each and nothing else, including any of my personal property unless, my daughter 'blankity blank' see's fit to gift them with something'' or at my daughters sole discretion...

My dad and step mom, and my mom both have me as the 'boss' of the estate, their documents both say something like, 'The division of all personal property is at the sole discretion of Lori, and her decision is final'

I'd say that your mom needs to put something in there as LIG said, because you know the vultures will flock immediately...and even though you don't tell them about the life policy they are sure to ask....just a little heads up when the time comes and you have to make arrangements, the funeral guy will ask how you are paying for this, is there any life ins might want to tell him on the DL how you will handle this and the others need not know...

Posted: 24 Oct 2008 12:21 Post Subject:

Exactly what my dad did...left me and my one brother to see to things. I guess when the time comes it will be a little uneasy dealing with the situation but he knows we would follow his wishes.

Posted: 24 Oct 2008 12:39 Post Subject:

Right, in the will and or estate leave them out----got it---
But so I know we are on the same pafe about this--- Life Insuranse money is a different story. If they were not named, they have no claim to it right?

Posted: 24 Oct 2008 01:33 Post Subject:

Technically yes. However, anybody can contest anything. So even if the insurance policy has only you, anyone member of the family can "contest/sue" to have them included. They can say you coerced them, they were mentally incapacitated, etc. They could even go as far as saying that "I talked to mom and she told me she wanted me to have half, but _____ would never get the forms for her to sign."

Having that specifically mentioned as an exclusion in another legal document will give you more data to support your side should it be contested.

Posted: 24 Oct 2008 08:51 Post Subject:

I also ran into clients that did not want their beneficiaries to know that they where the beneficiaries. I simply told them that they might as well give me the premiums ( jokingly of course) because the life insurance company will not contact their beneficiaries if they died. I informed them that someone must be notified or the chances of them not getting anything are high.


Posted: 24 Oct 2008 10:44 Post Subject:

Have mom include in her will something along the lines of, 'it is my intent that my 'good kid' also gets all my life insurance, i in no way intend for him to have to share this benefit with his/her siblings' you get the picture.

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