Someone else has been paying the premium and is beneficiary now, does that person decide who is beneficiary or does the insured always have the right to change it?
2007-02-23 04:09:50 · 6 answers · asked by Reed L 2 in Business & Finance ➔ Insurance
The OWNER of the policy can change the beneficiary. The INSURED PERSON is not necessarily the owner.
Once the insured person lets someone else take out a policy on them (spouse, parent, inlaws, whatever), they then lose ALL control over who the beneficiary is. The beneficiary can be changed at ANY TIME without notice to the insured.
The insured person has NO right to change the beneficiary, unless they are also the owner.
2007-02-23 04:22:30 · answer #1 · answered by Anonymous 7 · 2⤊ 1⤋
In general, the policy OWNER (whoever took out the policy originally) may name the beneficiary. However, I believe that the current beneficiary must be notified of the change. That is how a life insurance policy I recently dealt with works.
2007-02-23 04:14:38 · answer #2 · answered by Tom's Mom 4 · 0⤊ 0⤋
The owner of the policy, who is usually the person who took out the policy initially and pays the premiums, is the only one who can make changes. The insured has no rights unless he or she owns the policy.
As long as the owner has what's called "an insurable interest" in the person insured, the permission of the insured is not needed. "Insurable interest" could be that the owner is the child, parent, spouse, or even business partner (business might suffer if partner died) of the insured. It is not legal to take out an insurance policy on a random person.
2007-02-23 04:32:25 · answer #3 · answered by roxburger 3 · 0⤊ 0⤋
It depends upon how the beneficiary is named. If the beneficiary is a revocable beneficiary, then the owner of the policy can change the beneficiary without the consent of the beneficiary. However, if the beneficiary is named as an irrevocable beneficiary, then the owner can only change the beneficiary with the consent of the beneficiary.
2007-02-23 09:56:15 · answer #4 · answered by billyshears 3 · 0⤊ 0⤋
The insured actually has NO rights on a life insurance policy. The policy OWNER retains all rights. The owner can take a loan against the policy (whole life cash value policies), change the beneficiary, receive any declared dividends, surrender the policy, etc...
2007-02-23 04:14:29 · answer #5 · answered by kja63 7 · 4⤊ 0⤋
The person who owns the policy and who pays for the policy gets to make the decisions.
2007-02-23 04:16:47 · answer #6 · answered by la buena bruja 7 · 1⤊ 0⤋