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Wed 7 Nov, 2007 09:27 pm
Hi all,
My estranged dad recently died and I found out as a result that the I was named as a beneficiary on a really old insurance policy.
My dad bought this policy I guess when I was a little kid and when he and my mom were still married. He named myself and my brother as beneficiaries. This was between 31-38 years ago. My dad since divorced my mom and also my step mom and was married to his third wife of 20 years when he died.
My step step mom is upset that he didn't change the beneficiaries to her and that my brother and I are still listed. Therefore, she told the funeral home to send my brother and I the bill for his funeral - using the insurance to pay for it. Neither my brother and I will sign the release giving the approval for this b/c we do not agree with it. I have submitted my claim to the insurance company.
I found out this morning that my step step mom has obtained a lawyer to try and keep me from getting any money from this policy. Is this possible? Or when you are listed as a beneficiary that is firm.
Any insight into this would be appreciated. I am wondering if I need to obtain a lawyer or is she "blowing smoke." I am not sure how she would have any legal grounds. Again, thanks a lot for any insight.
JIM
A life insurance policy is a contract between the owner and the insurance company, directing the company to pay the proceeds of that policy to the named beneficiaries -- in this case, to you and your brother. Your father's widow has no interest in that policy: she is not an owner, an insured, or a beneficiary. She is a total stranger to the policy. Consequently, she cannot tell the insurance company how to pay out the benefits.
You, as co-beneficiary, need to contact the insurance company (easiest way is through the agency that sold the policy, although, over the course of 30 years, it may have gone out of business) and tell it that you are the co-beneficiary and that you and your brother want the life insurance benefits.
As for your father's widow trying to get you to pay for the funeral, it won't happen. The funeral costs should be paid by your father's estate. The life insurance benefits that are to go to you and your brother are not part of that estate, so they are not available to pay for the funeral. If your father's widow somehow manages to get her hands on those benefits and spends them, then she is guilty of theft. And if you get a bill from the funeral home, just send it back saying that you're not responsible for it and that they should send the bill to the executor of your father's estate.
Sounds like a mess.
Good luck, Jim.
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