Are FE PLANS ASSIGNABLE?

[Mavanove]

Just had a death claim. And the beneficiary is asking if the American Continental Life policy is assignable.

Any help would be appreciated.

The death was during the contestabilty period. So the funeral home won't accept the coverage as payment.

 

[WinoBlues]

Just had a death claim. And the beneficiary is asking if the American Continental Life policy is assignable.

Any help would be appreciated.

The death was during the contestabilty period. So the funeral home won't accept the coverage as payment.

Probably. However, the funeral home does not have to take it.

 

[Mavanove]

Yes, the funeral home said they won't take it; however, found a company that would take it, if it is assignable.

Thank you, for the reply.

 

[Newby]

No. The funeral home is wanting to know if a funeral assignment company (such as ForeThought) will accept assignment and pay them before the funeral.

If the policy was non-contestible (over 24-month old) ForeThought or any other assignment company would take assignment of it and pay the funeral home by bank transfer immediately with no recourse.

Since the policy is contestible, no assignment company in their right mind would accept assigment of it.

American Continental policies are especially bad since they don't pull an MIB before issuing the policy. You would have to assume that they would have more recinded policies than most other companies.

It will take months for them to make a positive decision but if they find a reason to recind the policy it might be quick.

You as the "underwriting agent" probably have a better idea of how it will go than anyone.