Owners, Beneficiaries, and Insureds

[shonceman]

Even worse are the cases where agents go back for a new sale & dont assist the client to update old policy beneficiaries at same time they are writing the new case with proper current beneficiaries.

You mean, when you say you're reviewing their policies, you actually REVIEW them??!!!

 

[Allen Trent]

You mean, when you say you're reviewing their policies, you actually REVIEW them??!!!

Amazing how many added sales & referrals can come from helping someone discover their policy bought when they were 9 years old still has the deceased mother & father as beneficiaries or their ex spouse

 

[rousemark]

With Sr Life the owner can now (recently added) have a charitable organization receive up to $1000 of the proceeds. In addition to naming family members, I've never had a problem naming a church, fiance/fiancee, girlfriend/boyfriend, or funeral home for someone with no living family, beforehand.

You cannot name a funeral home in Tennessee.. I used to put, "XYZ Funeral Home, as their interest may appear" but the state stopped that.

 

[LostDollar]

On a younger age FE case, I usually just ask, "Who would be likely to handle your funeral arrangements?" Then I encourage them to name an adult they trust. Sure, there's a chance that person won't do right, but they usually name their mom, or some other respected family member. In 30 years, the only time I've encountered a problem involving a beneficiary at claim time is when another family member, who is not the beneficiary, tries to pull some shenanigans (which never work, it's just a PIA to have to deal with it.)

I don't look over here very much any more, but back when I was looking regularly, I saw one-or possibly two threads--from agents describing a situation where the "trusted" person just kept the money.

I can't remember enough to find the thread I am thinking of, I just remember it sounded very distressing for everyone involved, except the person who got and kept the money.

 

[shonceman]

I don't look over here very much any more, but back when I was looking regularly, I saw one-or possibly two threads--from agents describing a situation where the "trusted" person just kept the money.

I can't remember enough to find the thread I am thinking of, I just remember it sounded very distressing for everyone involved, except the person who got and kept the money.

Actually, I'm trying to handle a problem claim right now where the family members are probably saying that about the beneficiary. But the story from her side is really fairly compelling. She is the deceased's granddaughter, and her caregiver late in life. The lady didn't trust her children to do the right thing for various reasons.

Well, somehow, an uncle was able to make arrangements with a funeral home, without including the granddaughter/beneficiary in the process. She had absolutely no part or say in handling any of these arrangements, and didn't sign the funeral services agreement, or any assignment forms. Therefore, she doesn't feel she should pay, or even contribute to the funeral. However, the funeral director is refusing to file for a death certificate until the funeral is paid for. (I'm not sure how they were able to proceed with the funeral without some kind of payment, but the uncle who signed for it is apparently now stiffing the funeral home.) The bene can't file a claim without the DC, but she'd actually rather not get the money at all than give the uncle one dime!

Personally, I think her grandmother was counting on her to get the funeral paid for, which she should do if the charges are legitimate. But she's pretty convinced that the uncle and the funeral director have some kind of shady deal worked out, perhaps padding the bill so the uncle gets a kickback. Given the way things were handled by the uncle, I can't say I blame her for being suspicious. Shenanigans!

 

[Tahoe Ray]

Actually, I'm trying to handle a problem claim right now where the family members are probably saying that about the beneficiary. But the story from her side is really fairly compelling. She is the deceased's granddaughter, and her caregiver late in life. The lady didn't trust her children to do the right thing for various reasons.

Well, somehow, an uncle was able to make arrangements with a funeral home, without including the granddaughter/beneficiary in the process. She had absolutely no part or say in handling any of these arrangements, and didn't sign the funeral services agreement, or any assignment forms. Therefore, she doesn't feel she should pay, or even contribute to the funeral. However, the funeral director is refusing to file for a death certificate until the funeral is paid for. (I'm not sure how they were able to proceed with the funeral without some kind of payment, but the uncle who signed for it is apparently now stiffing the funeral home.) The bene can't file a claim without the DC, but she'd actually rather not get the money at all than give the uncle one dime!

Personally, I think her grandmother was counting on her to get the funeral paid for, which she should do if the charges are legitimate. But she's pretty convinced that the uncle and the funeral director have some kind of shady deal worked out, perhaps padding the bill so the uncle gets a kickback. Given the way things were handled by the uncle, I can't say I blame her for being suspicious. Shenanigans!

Who's the estate executor?

 

[rousemark]

Actually, I'm trying to handle a problem claim right now where the family members are probably saying that about the beneficiary. But the story from her side is really fairly compelling. She is the deceased's granddaughter, and her caregiver late in life. The lady didn't trust her children to do the right thing for various reasons.

Well, somehow, an uncle was able to make arrangements with a funeral home, without including the granddaughter/beneficiary in the process. She had absolutely no part or say in handling any of these arrangements, and didn't sign the funeral services agreement, or any assignment forms. Therefore, she doesn't feel she should pay, or even contribute to the funeral. However, the funeral director is refusing to file for a death certificate until the funeral is paid for. (I'm not sure how they were able to proceed with the funeral without some kind of payment, but the uncle who signed for it is apparently now stiffing the funeral home.) The bene can't file a claim without the DC, but she'd actually rather not get the money at all than give the uncle one dime!

Personally, I think her grandmother was counting on her to get the funeral paid for, which she should do if the charges are legitimate. But she's pretty convinced that the uncle and the funeral director have some kind of shady deal worked out, perhaps padding the bill so the uncle gets a kickback. Given the way things were handled by the uncle, I can't say I blame her for being suspicious. Shenanigans!

Not sure it is legal for the death certificate not to be filed..

 

[Allen Trent]

Actually, I'm trying to handle a problem claim right now where the family members are probably saying that about the beneficiary. But the story from her side is really fairly compelling. She is the deceased's granddaughter, and her caregiver late in life. The lady didn't trust her children to do the right thing for various reasons.

Well, somehow, an uncle was able to make arrangements with a funeral home, without including the granddaughter/beneficiary in the process. She had absolutely no part or say in handling any of these arrangements, and didn't sign the funeral services agreement, or any assignment forms. Therefore, she doesn't feel she should pay, or even contribute to the funeral. However, the funeral director is refusing to file for a death certificate until the funeral is paid for. (I'm not sure how they were able to proceed with the funeral without some kind of payment, but the uncle who signed for it is apparently now stiffing the funeral home.) The bene can't file a claim without the DC, but she'd actually rather not get the money at all than give the uncle one dime!

Personally, I think her grandmother was counting on her to get the funeral paid for, which she should do if the charges are legitimate. But she's pretty convinced that the uncle and the funeral director have some kind of shady deal worked out, perhaps padding the bill so the uncle gets a kickback. Given the way things were handled by the uncle, I can't say I blame her for being suspicious. Shenanigans!

Yikes, those are always terrible to hear about & far too common in terms of the resentment.

This might be a very valid argument for the need for pre-paid funeral or irrevocable bene to funeral home instead of FE or other life insurance being planned to pay for funeral.

Because a beneficiary form on any asset with a beneficiary listed doesn't have a listed reason/purpose for the money, it is free to be used for anything the bene wants. For all we know, the insured listed the grandaughter as a gift for being her caregiver.

I wonder if the funeral home would have a claim against any probated estate if there is a house or anything left. Seems like the son entered into the agreement & likely is the only one the funeral home can go after

 

[shonceman]

Who's the estate executor?

On a $10k policy?

 

[Allen Trent]

On a $10k policy?

No, the 10k policy wouldn't be involved in probated estate if grandaughter was direct bene on the policy. I assume Tahoe Raye meant executor of her probate estate of creditors & any house/assets, etc