My mother has a life insurance policy on my son; what happens to the policy if she dies before he does?

Question

Will the insurance company refund the money paid in to her estate?

Answer 1

No...you have the option to continue paying the premiums or let it go.

Answer 2

After determinig the amount of life insurance needed, an individual must determine the type of life insurance to purchase. Life insurers sell a variety of insurance contracts, many of which are designed specifically for certain needs.

Benificiary is/are the person(s) designated in a life insurance policy to receive the death benefit. Types of beneficiaries that can be designated in life insurance policies include the following:
* The primary beneficiary is the first party entitled to receive the death benefit at the insured's death.
* The contingent beneficiary is the beneficiary who is entitled to receive the death benefit if the primary beneficiary is not alive.
* A revocable beneficiary designation means that the policy owner has the right to change the beneficiary without the beneficiary's consent.
* An irrevocable beneficiary designation means that the policy owner cannot change the beneficiary without the beneficiary's consent.
* A specific beneficiary designation means that the beneficiary is named and can be identified, such as "Christian Louis Swift, son of the insured"
* A class of beneficiary designation means that a specific individual is not identified but is a member of a group to whom the proceeds is paid. One example of class designation is "children of the insured"

Now regarding the answer to your question. Who is the beneficiary of the Policy? Is it your mother or someone else. If it is someone else then it does not matter otherwise the beneficiary would have to be re-designated on your mother's death.

Remember that this policy is taken out on your son and not your mother. The proceeds are dependent on your son's life or death and NOT your mother's life or death.

I believe that the amount paid is the premium of the policy as per its terms and conditions. This will not be returned to you or anyone else unless the policy matures or is cancelled again depending on the type of insurance purchased. Even on cancellation you won't get all the money back as your son's risk has been covered until that time.

Better check with your insurance agent or the insurance company in question.

Answer 3

The life insurance policy is written on your son. You can continue to pay premiums on the policy but you should check to see if there are any stipulations in the insurance contract in the event your mother does pass away. You can also contact the insurance company direct regards to any refund. Insurance Company's guidelines differ from company to company. So it's really hard to tell you something etched in stone. Sorry!

Answer 4

what happens when the owner & not the beneficiary dies, is that the policy ownership will transfer to beneficiary. This will cause a problem if the new owner/bene is still a minor. Keep in mind that your son, regardless of age will be the owner & bene! So you will want to take care of that right away.

Check with your mother & have her consider puting on a contingent owner & bene (you will need the agen or company to do this). Then at her death, the ownership will transfer (& the owner must make payments), and the new bene will automatically be in place until or if the new owner makes any changes.

Answer 5

No. If this is a whole life policy, and it's paid up, she should try to transfer it to someone else while she's alive.

You don't mention who the beneficiary is - but the policy will pay out to the beneficiary listed on the policy, should your son pass away, regardless of the "status" of the policyowner, as long as the policy is active (ie, hasn't cancelled for non-payment).

Answer 6

Nothing ... the policy is on your son. If she dies first and you don't continue paying the premiums, the policy expires. Insurance companies don't refund premium payments because someone who bought a policy dies. The policy is a 'hedge against the death' for the person in for whom the policy is written ... nothing more ... nothing less!

Answer 7

if your mother is the owner of the policy, then the ownership would transfer to the contingent owner. if there is no contingent owner named, then her estate would be the owner of the policy and any changes would be signed off by your mother's executor/administrator. it might be a good idea to go ahead and assign a contingent owner now so in case your mother does pass away before your son, there can be someone already designated to sign for changes and documents.

Answer 8

Yeah,. what she said,..

so kill your son first,. then her... :)