Can an ex-spouse draw life insurance benefits?

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PostPosted: Mon Apr 20, 2009 4:12 am   Post subject:   

with the proper consent of the policy owner it can be changed within a few days.One just need to feel out one form in order change the beneficiary.

follow this link for more information.



http://www.insurance.va.gov/miscellaneous/choose.htm



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PostPosted: Mon Apr 20, 2009 10:20 am   Post subject: insurance  

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how long does it take to change your benificary on your miltarylife insurance policy

Only the Military person can change the Beneficiary. He/she can go to their UA (Unit Administrator) and ask for the Beneficiary to be changed. The UA will give you the paperwork to fill out. It takes just a few minutes. As soon as you change it, the information is automatically updated in the Military personel's file.
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PostPosted: Mon Apr 20, 2009 11:25 am   Post subject:   

Hey Snoop, you may need to contact the MPF or the DEERS for the beneficiary change purpose. As the other have also mentioned you are required to fill-in the required paper work and submit it to the concern department.



However, who do you want to name the beneficiary on the policy? The Military life insurance would inform the spouse (when she is the beneficiary) regarding the change in the plan.


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PostPosted: Mon Apr 20, 2009 11:19 pm   Post subject: insurance  

That's true......I forgot about that. The spouse WILL be informed. I would talk to your Chain of Command about the issue. DEERS: something else ( I forgot to say..) if you change your Beneficairy. DEERS concerns benefits, etc.

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PostPosted: Thu Dec 03, 2009 4:40 pm   Post subject: ex wife  

I have an insurance policy that I have been paying on for 13+ years on my ex husband. We have a child together. If he were to pass, will I be able to cash his policy in? Can I get death certificate and from whom? I understand that the insurance company needs that to get the money.


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PostPosted: Thu Dec 03, 2009 7:38 pm   Post subject:   

Anonymous2u . . .



Depending on the state in which your ex-husband dies, you may or may not have the ability to get a "certified" copy of the death cert. Your child will have an absolute right to obtain one as a blood relative. The death certificate comes from either the city, county, or state where the death occurs. In Texas, for example, you may have to request the cert through the mortuary that files it with the city or county.



In California, an "interested" party (such as an employer or business partner) who is not a spouse, ex-spouse, child, parent, or sibling may obtain an "informational copy" of the death certificate from the county of record through the state. While not a "certified copy," it is acceptable to the insurer for purposes of paying a death claim. It may not be acceptable to some creditors for the purpose of cancelling a debt.



Photocopies of an original certified copy are almost always unacceptable for filing a death claim. And death certificates from Haiti, the fraudulent death claim capital of the world, are suspect before they arrive -- even if accompanied by "the videotape of the funeral procession" you can get for $20. There are so many copies of that video in the possession of insurance companies, it's not funny anymore. But it's an genuinely hysterical tape to watch!



As for your ability to "cash his policy in," that depends entirely on whether you or your child (who I assume is in your care) is the beneficiary. You may be paying the premiums, but if you're not the owner, you may not even be the beneficiary.



Do you know who the owner and beneficiary are? If both are you, then you'll have your death claim check in about two weeks from the time the properly submitted death claim is received by the company. It could take several weeks to receive the death certificate before you may file the claim. At least, you should notify the insurer of his death, when it occurs, so they can send you the claim form and open a file in preparation to receive it.



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PostPosted: Fri Dec 04, 2009 11:57 am   Post subject: life insurance  

I guess I'm putting in my '2 cents' in here: why would you WANT to pay on an Life Insurance policy on your ex? I'm not saying it's a 'wrong' thing to do, but,..I guess I never understood why people do this. Can you give me some more 'insight' please? I'm very curious.

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PostPosted: Fri Dec 04, 2009 3:39 pm   Post subject:   

sdchargersfan . . .



The concept is not that difficult or unreasonable. Let's say you and your spouse each own $500,000 of life insurance on your own lives, and have named each other as primary beneficiaries. You're living happily ever after, but something happens along the route and you decide to go your merry ways, and for sake of discussion, amicably.



But, in doing so, you have some major outstanding joint debts and agree to split them and each be responsible to pay them off (or have other obligations, like children who are still several years away from adult status and/or graduation from college) -- understanding that the joint obligation cannot be severed. Neither of you is interested in taking the bankruptcy route to debt elimination, but it will take a number of years to pay these debts off. At least there's enough money in the death benefit of either policy to provide the necessary funds.



How do you prevent your ex-spouse from cancelling the insurance and sticking you with the entire debt you thought they were going to pay, and which would be paid by the proceeds of their life insurance?



Three main ways: First, be named as the irrevocable beneficiary (usually reserved for naming a trust or charity as beneficiary), in which case you could legally force your ex- to maintain the policy. Second, agree to pay each others' premiums to ensure that the policies remain in force until the remaining obligations are no longer a concern (but you're powerless to prevent them from taking you off as beneficiary, which makes you NUTS for choosing to pay their premiums).



The third way is perhaps the best, just assign ownership of your own policy to them, and they assign theirs to you. As owner, you are unlikely to name someone else to receive the proceeds before your obligations have diminished (other than as a collateral assignment of policy proceeds to a third-party you owe money to, which does not make them a beneficiary).



[Note: If a large amount of alimony is involved, a good lawyer might recommend that you agree to pay the cost of your ex's life insurance within the total alimony payment, so at least you get a tax deduction for the amount of premium you're paying, which is not otherwise deductible (your ex will pay the tax). May not make you happy, but it's a valid reason, even if you are no longer the beneficiary.]



So how do either of you know you're going to receive the proceeds when the other dies. Simple, you're paying the premium to keep the policy in force. If you choose to stop paying, you understand that there may be no money to collect following the insured's death.



As the owner, if it's a cash value policy, you could also borrow the cash value along the way and use it to pay off some of all of your obligations, or throw a party, or whatever you choose to do with the money, understanding, however, that by doing so you diminish the death benefit by the same amount plus interest on the life insurance loan.



Once the debts or obligations are no longer a concern, you both reassign the policies back to each other, and you choose whether you want to keep your own insurance in force or not. If you do, you pay the premiums, if you don't, you surrender the policy.



The only way to be certain that the life insurance proceeds will be there if needed is to continue paying the premiums. Makes no difference who the owner is. Life insurance is simply, "I pay, I die, You pay," (or "You pay, you die, they pay," same thing).



It's not any different from the party who holds title to your automobile (let's say its a $300,000 Lamborghini that you still owe $250,000 on -- nice ride!), and who buys a $300,000 decreasing term policy for the 5 years you're financing the vehicle -- guaranteeing that they'll collect the balance on the loan if you are killed cranking that 'ghini at 180mph on some stretch of road somewhere. They could choose to include the cost of insurance in your financing (usual method) or they could pay it on their own (this is the NUTS part that is throwing you off).



Why would they want to pay the premium instead of making you pay it? To be sure it gets paid, so they'll be able to collect the benefit.



That's the reason why credit life insurance policies (on cars, motorcycles, boats, airplanes) are normally purchased with a single premium. No one has to remember to pay future premiums, and no one can skip out on the premium payments. If the debt is repaid early, there will usually be a refund of some or all of the "unearned" premium. Either way, the debt gets paid.



Hope this helps to clear the confusion.



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PostPosted: Sat Dec 05, 2009 2:32 pm   Post subject: insurance  

OK.....alot of your explaination DOES make sense. I guess that's looking toward your future...taking care of it, I mean. With all of that money, your debts WOULD be paid!!LOL

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PostPosted: Sat Dec 05, 2009 11:14 pm   Post subject:   

Actually, $500,000 is about triple the average amount of lindividual ife insurance in force in America. It's a bit higher for term policies at about $240,000.



Here in California, $500,000 is not going to pay off most mortgages + consumer debt + fund children's education + leave anything for the surviving spouse.



And after 2010, when the old estate tax rules reappear, many middle income households are going to be exposed to estate taxes simply due to the value of their home, cars, retirement plan assets, business assets, and life insurance benefits.



The Democrats plan for Obamacare (if it passes) will be financed in part by the reaping of the 55% estate tax on the largest estates that are not properly protected. When they talk about the "wealthy paying their fair share" most people think they're only talking about income tax. The estate tax is the Democrats' secret weapon.



If it drops back to just $1,000,000, a $500,000 home and a $500,000 life insurance policy is all it will take to expose every additional penny of estate value to taxation following death (yes, I know, it all passes to the spouse at "step up value" first, but not everyone is married, and there are plenty of widows and widowers waiting at death's doorstep -- with plenty more on the way as we Baby Boomers are now hitting our 60s).



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PostPosted: Sun Dec 06, 2009 12:01 am   Post subject:   

Max, there is a 0% chance of it going back to $1,000,000.


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PostPosted: Sun Dec 06, 2009 12:04 am   Post subject:   

Quote:
---------------------------------------------------------------------- ----------



I guess I'm putting in my '2 cents' in here: why would you WANT to pay on an Life Insurance policy on your ex? I'm not saying it's a 'wrong' thing to do, but,..I guess I never understood why people do this. Can you give me some more 'insight' please? I'm very curious. WinkEmbarassed




Let's keep this super simple. You don't want to pay for an insurance policy on your ex. You want to collect on an insurance policy on your ex. The best way to make this happen is to be the owner and beneficiary and payer of the policy.



Sometimes this is becuase you simply want to benefit. Other times, it is because the death of your ex can cause a financial hardship.

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PostPosted: Sun Dec 06, 2009 8:38 am   Post subject: insurance  

Quote:
Let's keep this super simple. You don't want to pay for an insurance policy on your ex. You want to collect on an insurance policy on your ex.
Ok..I get it. It's almost looking at it like 'is the glass half full or half empty'. Can 'you' actually get a Life Insurance policy, on someone, without them actually knowing? I've never known a circumstance like this, but, I'm just wondering.
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PostPosted: Sun Dec 06, 2009 9:09 am   Post subject:   

It's possible, but certain criteria must be met.



However, I'm talking more about keeping a policy in force on an ex or buying a policy, with their knowledge.


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PostPosted: Sun Dec 06, 2009 6:04 pm   Post subject:   

Two things. In a "best case scenario", estate tax exemption might make it to $2,000,000. But we'll all have to watch Congress in the next 12 months -- because if they don't act, it WILL roll back to $1,000,000 -- the amount it was scheduled to increase to when EGTRRA was enacted in 2001.



Second, It is NOT normally possible to obtain life insurance on an adult oerson without their knowledge or cooperation!



Why not? Because all life insurance applicants age 18 or older MUST sign the application to acknowledge that the information provided in the application BY THEM is correct. An owner who is not also the insured must also sign the application, acknowledging the presence of insurable interest.



If any person other than the insured signs the application "as" or "in place of" the insured, it is not a valid application and can be voided by the insurer even beyond the normal 2-year contestability period (the point in time where the policy usually becomes incontestable).



Even STOLI transactions usually wait until the policy becomes incontestable before ownership is assigned to the originator who has no insurable interest when the application is made.



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