Can the owner of a policy also be the beneficiary?

Discussion in 'General Insurance Agent Discussions' started by rogermask, Dec 16, 2006.

  1. rogermask
    Offline

    rogermask New Member

    Posts:
    14
    Likes Received:
    0
  2. arnguy
    Offline

    arnguy Guru

    Posts:
    7,786
    Likes Received:
    12
    State:
    Pennsylvania
    Is the policy owner also the insured?
     
  3. arnguy
    Offline

    arnguy Guru

    Posts:
    7,786
    Likes Received:
    12
    State:
    Pennsylvania
    BTW, if insured and owner are not the same, of course, the answer is yes. If they are the same, there might be a problem with the beneficiary collecting the death benefit. Ha..ha. :lol:
     
  4. Guest
    Offline

    Guest Guest

    I assume you are talking about life insurance. The owner can make his estate the beneficiary and then dole out the amounts in a will or a trust. However I don't know if it would be a tax-free event to the estate... or to the beneficary.... as would a named 'person' beneficiary.

    Of course if the insured lives past 110 (I think is the new limit), the policy usually will endow and pay the DB to the insured.

    Al
     
  5. arnguy
    Offline

    arnguy Guru

    Posts:
    7,786
    Likes Received:
    12
    State:
    Pennsylvania
    If a life insurance policy has the estate of the insured named as beneficiary, the death benefit loses its tax-free status. However, an irrevocable insurance trust would cure that defect.
     
Loading...

Share This Page