Policy Payout

[willing]

Apologies in advance for the stupid question.

Regarding, Final Expense policies, when a Client passes, do Companies pay out in the form of a Check to the Beneficiary or do they give the money to a designated Funeral Home?

My FE companies are RNA, Americo, UHL, and Vantis.

Told you it was a dumb question...
Thanks for your time.

 

[digfesales105]

Check to bene typically. Most FE carriers won't accept a funeral home as the bene. Glad to see I'm not the only one up this early.

 

[jdeasy]

Apologies in advance for the stupid question.

Regarding, Final Expense policies, when a Client passes, do Companies pay out in the form of a Check to the Beneficiary or do they give the money to a designated Funeral Home?

My FE companies are RNA, Americo, UHL, and Vantis.

Told you it was a dumb question...
Thanks for your time.

The payout for all life ins policies is to the named beneficiary.

For 3 of those you mentioned, RNA, Americo and UHL, the beneficiary can be a funeral home. I would think it's the same with Vantis but I don't writ them.

I don't know of a company that won't let you name a funeral home as beneficiary unless it's AmAm. Seem to remember something screwy with them.

There is specific language you have to use. Such as with RNA and Americo it's; ABC Funeral Home as their interest may appear, the balance to; any normal allowed beneficiary.

Check with each company for how they want it worded. But it's no problem when dealing with good companies. I'm sure there are some that will have an issue but I would take an educated guess that is the least of their issues.

 

[Newby]

It's important to have a named living beneficiary on any FE policy. The money is paid to the beneficiary and the Benny can do anything they want with it such as buy a car, go on vacation, put it in the bank, pay a funeral, etc. FE policies are not really tied to being used for a funeral.

An exception is if the policy owner goes on Medicaid assistance. The Medicaid office will generally require them to either cash surrender to policy or irrevocably assign the ownership and beneficiary (as interests may appear) to the funeral home. Once this is done, the funeral home will be paid first with any remaining portion going to Medicaid. (actually the remaining portion goes to their estate but the entire estate will go to Medicaid on these cases.)

Most FE companies do allow the funeral home to be the beneficiary but I have run into a few that wouldn't. In those cases they force a cash surrender of the policy.

Don't ever make "the estate" the Benny or secondary Benny of a policy unless Medicaid requires it. It makes it unusable to pay funeral expenses and puts Medicaid 1st in line for it plus can subject the death benefit to taxes.

 

[RichMcK]

Depending on the state, a funeral home may not be usable. In my state, fh can't be used.

 

[willing]

Thank you all for your responses.
Long live the Insurance Agent.

 

[WinoBlues]

The payout for all life ins policies is to the named beneficiary.

For 3 of those you mentioned, RNA, Americo and UHL, the beneficiary can be a funeral home. I would think it's the same with Vantis but I don't writ them.

I don't know of a company that won't let you name a funeral home as beneficiary unless it's AmAm. Seem to remember something screwy with them.

There is specific language you have to use. Such as with RNA and Americo it's; ABC Funeral Home as their interest may appear, the balance to; any normal allowed beneficiary.

Check with each company for how they want it worded. But it's no problem when dealing with good companies. I'm sure there are some that will have an issue but I would take an educated guess that is the least of their issues.

I always thought the same thing also. Until I wrote my last Foresters apps a couple years ago. First they tell me yes, I submit the apps, They tell me no redo the apps, I throw a hissy fit, They say OK just this once, They change their mind and force us to change it. Said all fraternal were like that. Like I said my _Foresters_ policies.

 

[jdeasy]

I always thought the same thing also. Until I wrote my last Foresters apps a couple years ago. First they tell me yes, I submit the apps, They tell me no redo the apps, I throw a hissy fit, They say OK just this once, They change their mind and force us to change it. Said all fraternal were like that. Like I said my _Foresters_ policies.

Sound like Foresters. RNA is just as fraternal as as Foresters but they allow it. It's even in the agent guide as to how to word it.

But, I agree with Newby. It's far better to have a person as beneficiary but some people don't have anyone.

Also, as mentioned, be sure to check state rules.

 

[Newby]

Sound like Foresters. RNA is just as fraternal as as Foresters but they allow it. It's even in the agent guide as to how to word it.

But, I agree with Newby. It's far better to have a person as beneficiary but some people don't have anyone.

Also, as mentioned, be sure to check state rules.

I had to do a funeral home assignment on an RNA policy a month ago. They accepted it just fine. If it would have been a Foresters policy this family would have been required to cash surrender the policy. Unless they have a nursing home waiver, then they would have benefited. I don't remember if Foresters has that or not.

Monumental, Settlers and some others let them get their death benefit when they go in a nursing home. Pretty sweet setup.