Is there a status of limitation on life insurance policy payout to survivors.?

Question

My father passed away in '93. Just last month it came to my attention that he had a life insurance policy thru Principal Life Insurance that he started in the late 60's early 70's. In 2002 they did a dispersment of funds from owner of int. Nonadr. I'm waiting for that now. But does that mean the policy was still in effect in '93. and if so do they still owe the survivors benefitsfrom his policy. The comp. is realyy closed mouth about this and I'm trying to avoid getting a lawyer till its deemed necessary.

My father passed away and had forggotten about it. He had very little contact as him and my mother divorced in '69. It is safe to presume that 1. He never borrowed against. 2. It payed its own premiums after so many years, cause he couldn't have. I am the sole listed benefictuary this I've found out. Plus my mother said that in the divorce creed it was stipulated that he was to maintain his montgomery ward life insurance and me the benefituary. As I said, he passed away in '93 and in 2002 this insurance(life) did somesort of payment. That payment in unclaimed funds of NY. brought this too my attention. My Question I guess is " should I be looking farther into it?" Survivor benfits or such since they didnt know he passed.

If they did a payment in 2002, wouldn't the policy have been valid in '93 9 years earlier.
This payment they did is called distrabution from owner of int. nonadr. what ever that means.

Answer 1

The policy ends when policy owner dies. Since the company did not know he died in 1993, the company needs to recalculate how much premiums were paid from the policy between 1993 to 2002. From there, they need to find out if your dad borrow any cash value from the policy before he died. If he did, this amount will be deducted from the face amount. So it'll be like he just died yesterday and proceeds are being paid out.

To answer your question, the limit on payout is how much coverage your dad bought. Then this amount is distributed evenly to all beneficiaries named on the account. First it will pay the primary beneficiary, which is usually the spouse. If there is no primary beneficiary, then it will pay to the contingent beneficiary (which are usually the children). If your dad didn't name any beneficiary on the policy, then it will pay to his estate and then you will have to claim this money at the court.

Answer 2

I would say that as long as he was still paying on the policy, it would still be in force. Unless the policy was paid up, in which case, it would be in force til the time of death. At which case, you being listed as beneficiary, is still entitled to the death benefit.

The only problem I would think you would encounter is if the company is no longer in business or the company has changed owners and is a different company. But, if the company is still around, changed names or not, you are still entitled to the death benefit. Unless, the pay out that you are talking about in 2002 was a pay to your father because the company was either paying him off to close the life insurance or they were giving him the money for the stock in the company.

Hope this helps!

Answer 3

The policy sounds like it was inforce at the time of his death and since there was no valid known beneficiary it paid out by law. The proceeds even if paid to the state could still be recovered but if this is the case you may need to get legal representation even if just to inform you of your rights as a decentant entitled to the proceeds. The attorney can help establish your rights to the proceeds and work to obtain information that would not be available to you due to privacy laws and protection of information by the carrier.

Answer 4

Write to the insurance commissioner of your state. If the insurance company didn't know the owner (your father) had died, the policy probably lapsed. (But if he actually died before that lapse went into effect, the policy is still valid.) If they did know he died, then they should have done a search for the beneficiary -- you. The insurance commissioner may have to send you to the commissioner of the state that the insurance company is registered in, but it's worth any effort you make to get the money.

Answer 5

Dig out the policy itself and try to find out.

Another way to be to call up the company pretending to be an interested buyer, and ask the sales person all about it.

Answer 6

The fastest and easiest way is to file a claim. Base your need for an attorney on their response.