Friend As Beneficiary?

[HoosierLife]

I wrote a client with RNA that has no kids and is the youngest of 3 sisters. She has a, in her words, unofficial adopted daughter.

Because it was unofficial lol, I put close friend on the app. RNA calls and says that a close friend cannot be the bene.

They said I have to either get a family member as the bene or it can go to her trust.

My question is there any other FE companies that will allow a close friend to be the bene? What are my options here? This was a replacement and she didnt want to do it at first so I don't want to lose it...

 

[WinoBlues]

I wrote a client with RNA that has no kids and is the youngest of 3 sisters. She has a, in her words, unofficial adopted daughter.

Because it was unofficial lol, I put close friend on the app. RNA calls and says that a close friend cannot be the bene.

They said I have to either get a family member as the bene or it can go to her trust.

My question is there any other FE companies that will allow a close friend to be the bene? What are my options here? This was a replacement and she didnt want to do it at first so I don't want to lose it...

I think this is a Fraternal thing. Probably get the same result with Foresters. I do that all the time. Write a policy with another company and just put in agent comments that the friend is more like an adopted daughter nad will be responsible for final expenses.

 

[VolAgent]

Beneficiary change form is your friend...

 

[Mattschmidt]

Beneficiary change form is your friend...

YOU nailed it....put down one beneficiary on the app., then when you deliver policy, change it to whoever the client wants it to be.

 

[moonlightandmargaritas]

Because it was unofficial lol, I put close friend on the app. RNA calls and says that a close friend cannot be the bene.

To avoid problems in the future, you might want to study up on "insurable interest", and how it applies to life insurance.

 

[STIBROKER]

She has a, in her words, unofficial adopted daughter.

Because it was unofficial lol, I put close friend on the app.

if she can prove that she is financially responsable for the child she could name the friend as benie stating that she is in the will to take the kid if she died.......

 

[Jerard]

Settlers will take a friend as beneficiary. I just did one couple weeks ago with no problem.

However, I agree that doing a benificiary change is the better option in this case.

 

[HoosierLife]

Settlers will take a friend as beneficiary. I just did one couple weeks ago with no problem.

However, I agree that doing a benificiary change is the better option in this case.

Will RNA not have the same issue when I do the change bene form?
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To avoid problems in the future, you might want to study up on "insurable interest", and how it applies to life insurance.

I thought ins interest only worked the other way.

 

[FEproducerKen]

Will RNA not have the same issue when I do the change bene form?
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I thought ins interest only worked the other way.

I have ran into that more than a few times with making funeral home the beneficiary. Some companies prohibit it like SLAICO. But after the policy is issued they will have more leniency with the change form.

 

[InsuranceMonkey]

Will RNA not have the same issue when I do the change bene form?
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I thought ins interest only worked the other way.

Insurable interest boils down to what does the beneficiary stand to lose financially from the death of the insured? Or what finacial obligations will they have to pick up due to the insureds death?

Example - You have a policy with "Friend" as a bene. Though they may truely miss you and grieve your death, they have no real financial loss from it. In fact they have a windfall gain, like winning the lottery. In cold hard numbers, they are finacially better off with you dead than you alive. We explicitly try to avoid this. An acceptable bene has a direct and real finacial loss from your death. Spouse, children - they lose your income for bills and raising the family, the financial support you have always given them. A business partner - they may have to buy out your share of the business to avoid your spouse becoming a default partner. Or to help cover your share of business loans they'd suddenly become resposible for. You see where we're coming from here. The Bene isn't really making any money off the insured's death. They're breaking even from lost future finances or sudden gained debt.

Note: This may have less to do with final expense market than traditional life insurance in general.