Life Insurance Incorrectly Set Up in Estate

[pfg1]

Don't all companies require a beneficiary designation before issue? I know several companies I do business with do. Any agent worth their salt would make a point to discuss that for sure, and especially if they weren't married.

Definitely not a good situation to be in, and if what he said was accurate and correct, if I was him...I'd definitely be talking to a lawyer. Its not the companies fault, the agent...maybe. But yes, we can't assume all the facts stated are correct.

 

[meclimit]

Myself and my fiance went along to a financial advisor for a firm of advisors who set up our pensions and life insurance throughout this meeting we were under the impression the insurance would be setup in each others names.
...
unfortunately my fiance passed away upon trying to claim the insurance it became apparent the policies had no names setup and the money went to the estate being only engaged for 7 yrs this apparently counts for nothing so I got nothing.Although I did manage to claim enough to pay funeral debts from it.

The policies were a digit apart and I have been named as next of kin by her for some little policies and things we had a joint account etc

I have started a complaint against the company I wonder is this worth my time and energy im not expecting a huge amount im just angry that I paid for something that was useless to me I think I should atleast get my money back. any advise would be great

Sorry for your loss.

You say that you were under the impression that the insurance would be setup in each other's names. Were you listed as the owner of the policy insuring your fiancé? If so, normally the proceeds are paid to the owner of the policy rather than the insured's estate if no beneficiary is listed.

I take it you were not named as an heir in your fiancé's will? Or did she not have a will?

Why were you paying for the policy if you did not verify that you were the owner/beneficiary? If you were not the owner, then you really have no standing to claim the beneficiary was not as it should have been.

She signed the application (which presumably did not have a beneficiary listed or listed the estate) and got the application with the policy that should have been delivered to her. Plus she may have received statements showing the beneficiary was her estate, which, if incorrect, she would have had the opportunity to correct.

 

[Cornelius]

Have you looked at your own current program? Depending on the family you could ask them to turn over the remaining funds as you should be able to show you paid premiums. Worse they could say is no.

Is a family member her administrator? It may be a case of the agent had an issue with the insurable interest and just left the beneficiary blank. Not saying that's what was done but there has to be some reason.

Do you remember any conversation about the beneficiary designations after your married because as you were making payments I'm assuming you were the policy owner.

 

[LGilmore]

There is always the possibility that other people were named as beneficiary. I have a few clients who own policies with different primary benies.

 

[moonlightandmargaritas]

So what this sounds like is there was no named beneficiary, which would mean proceeds are paid to the estate.

How many life insurance applications have you personally gotten issued where no beneficiary is listed?

 

[keith48]

Looks like this guy made one post and is gone. I hope he got the answer he needed.

This reminds me of a classic insurance story I witnessed. When I first came into the business with Bankers Life 18 years ago with my dad, we were in his office one day when the wife of one of his clients came barging in. Her husband had passed away and she wanted to know what happened to the $250,000 life insurance policy she was supposed to get benefits from when he died a few weeks earlier.

A few weeks before his death, my dad's client had come into the office and changed his beneficiary to his girlfriend instead of his wife. Of course, there was nothing that could be done about it - the owner of the policy had made a change to the beneficiary and that was that! It was not a pleasant meeting. I felt so sorry for that lady. What a terrible parting shot her husband left her.

 

[BNTRS]

How many life insurance applications have you personally gotten issued where no beneficiary is listed?

There's a big big difference between having a policy issued with a beneficiary and having a beneficiary at claim time.

 

[xrac]

The OP must not be too interested in this deal since he has not posted again. Have we been had?

 

[pfg1]

The OP must not be too interested in this deal since he has not posted again. Have we been had?

That seems to be quite common lately. Post once and gone. Makes you wonder if they ever even read the responses.