FE policy to give DB to Church

[axeman462]

I have a customer that wants to buy a small FE policy specifically to leave the death benefit to his church.

He will pay the premium, he will own the policy, the beneficiary will be his church.

On the surface, there doesn't to be anything wrong with this. But will UW flag this?
Also, if it is kosher, do I just write the name of the church on the beneficiary line of the application, or do I need more info from the church?

 

[jdeasy]

It’s just like naming a funeral home beneficiary. Most companies are ok with it. Some get stupid about it.

If you are dealing with one that gets stupid then just name a person beneficiary then do a beneficiary change after issue.

 

[axeman462]

It’s just like naming a funeral home beneficiary. Most companies are ok with it. Some get stupid about it.

If you are dealing with one that gets stupid then just name a person beneficiary then do a beneficiary change after issue.

thank you.
So just writing the name of the church on the beneficiary line is ok?

 

[jdeasy]

thank you.
So just writing the name of the church on the beneficiary line is ok?

With most companies. Some get really stupid though. RNA would be the worst.

They blame their dumb rules on being fraternal. But other fraternals don’t have the dumb rules that rna does.

 

[jdeasy]

I would imagine if you tried to use SNL there would be a problem. They will invent problems. If there is a worse company doing FE today I can't think of who it is.

 

[WinoBlues]

Some get really stupid though.

They blame their dumb rules on being fraternal.

Yup, think it was my last Foresters.
Kicked back one that we named the FH. I said no problem, and named a son. Once the policy was issued we did a policy change, they kicked it back. "Fraternal rules".

 

[Newby]

Old American wont let you name a funeral home either. Well that one I was involved in was a family on Medicaid that needed to assign their $15,000 policy to a funeral home or cash surrender it for the $3500 cash value on a very unhealthy lady.

Old American required that the family cash surrender it. They absolutely forbade any other option to help this lady not lose her Medicaid. Horrible rule that only benefits the Life Insurance Company and screwed over the family.

It’s been many years since I last interacted with them so hopefully they’ve changed it by now. But who knows?

 

[jdeasy]

Old American wont let you name a funeral home either. Well that one I was involved in was a family on Medicaid that needed to assign their $15,000 policy to a funeral home or cash surrender it for the $3500 cash value on a very unhealthy lady.

Old American required that the family cash surrender it. They absolutely forbade any other option to help this lady not lose her Medicaid. Horrible rule that only benefits the Life Insurance Company and screwed over the family.

It’s been many years since I last interacted with them so hopefully they’ve changed it by now. But who knows?

OA couldn’t stop the owner from assigning to another owner.

Even a bathroom lawyer could have won that case.

 

[Newby]

OA couldn’t stop the owner from assigning to another owner.

Even a bathroom lawyer could have won that case.

The family did not get a lawyer. But Old American had one grouchy old lady that was the only person in the company that could do these requests. You got to the same lady every time you call. And she would not allow any funeral home ownership of their policies.
She cost that family a lot of money.

 

[jdeasy]

The family did not get a lawyer. But Old American had one grouchy old lady that was the only person in the company that could do these requests. You got to the same lady every time you call. And she would not allow any funeral home ownership of their policies.
She cost that family a lot of money.

They cannot stop the owner from assigning ownership to someone else.

Doesn’t matter how grouchy she is.