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When someone purchases life insurance, he or she must have an “insurable interest” in the insured. This means that the policyholder, i.e. the person who owns the policy and names the beneficiary or beneficiaries, will suffer financial loss if the insured dies unexpectedly. It is important to remember that this sort of relationship only needs … Read more
California Beneficiary Laws For the most part, the process of naming beneficiaries to a life insurance policy is the same across all states. In fact, unless prohibited to do so by law, anyone can be named as beneficiary to a life insurance policy, regardless of whether he or she has any vested interest in the insured. … Read more
Life Insurance Companies May Not Contact Beneficiaries After facing a loved one’s death, life insurance can help provide necessary financial security to pay for funeral expenses and supplement lost income. In most cases, when someone takes out life insurance, he or she lets the named beneficiaries (often family members of the insured) know about it. … Read more
Ideally, the death benefit on a life insurance policy is paid directly from the insurance company to the named beneficiary or beneficiaries. However, disputes frequently arise over who is rightfully entitled to the death benefit. One claimant might allege that the other claimant changed the insured’s beneficiary designation through forged paperwork, or that the named … Read more
Waiting for a claim to be paid out can be a frustrating process. Generally speaking, claims should be processed and paid out within a month, but this is often not the case. Some claims can take several months before being approved or denied, often being delayed several times by the insurer. Beneficiaries might begin to … Read more
When purchasing a life insurance policy, the policyholder aims to provide an extra layer of financial protection and peace of mind for their loved ones. However, since life insurance companies are incentivized to minimize risk, they will frequently look for reasons to cancel a policyholder’s coverage. This can put their financial security at risk and … Read more
What is a Spendthrift Clause in a Life Insurance Policy? Let’s start with defining a Spendthrift Trust Provision A “spendthrift trust” is a form of trust meant to protect the heir of an estate from creditors. A trust is created when an individual puts money aside to be managed, invested, and distributed by a trustee. … Read more
If all goes well and all documentation is in order, insurance companies should pay out on claims promptly. In most cases, the time from which the death certificate and necessary documentation is filed to payment of the death benefit will take less than a month, possibly even under two weeks. However, if your claim is … Read more
National life insurance law firm, Boonswang Law, explains who gets money if the beneficiary is deceased, dies soon after or at the same time as the insured, dies while the claim is under review, or if the life insurance beneficiary designation is otherwise invalid. If a close friend or loved one has died and the … Read more
Losing a loved one is devastating, and negotiating with life insurance companies only adds to your stress during this difficult time. If your loved one passed away shortly after obtaining life insurance, you may have concerns about how your death benefits will be affected. This article from Boonswang Law answers the question “what happens if … Read more
