Is there a policy that issues refund checks to people every 6 months or so>?

Question

A friend claims she gets a refund check from a life insurance policy pertaining to her g.grandfather for 4grand /6 months. No taxes are taken and she has to cash it or it will be lost and she will lose the value. What kind of policy could she possibly have and where do I sign up?It doesn't seem to hurt her chances of getting welfare or public assistance or disability insurance so I am assuming this is a new thing. I am dying to know what kind and where i can get one. Please let me know.

Answer 1

It's not a refund. It likely means her grandfather is dead, had life insurance or an annuity, and it's paying her as beneficiary for XYZ years.


Life insurance companies don't give out free money, sorry.

Answer 2

either you misunderstand or she exaggerates

death benefits on a life insurance policy are free to the beneficiary. There are also a very limited number of very old people who've outlived the actuary's table from when their policy was issued [like age 103+] and their beneficiaries receive payments.

you can't sign up. her G.grandfather apparently did back in 1926 or somewhen.

As to her being on welfare, assistance, and/or disability -- I suspect she's lying to either them or you. Afaik, all of them ask about your other resources and not telling them about these checks constitutes fraud. If/when the total received fraudlently exceeds $10k, it becomes grand fraud (a felony).

so her future place of residence may well be as an involuntary guest of the state -- who'll want their money back, of course, and will happily take it from everything she owns and all the checks she gets from anywhere.


I think you might choose friends who'll do the things that'll help you get ahead in life ... mostly that's work and learn.


GL

Answer 3

Her grandfather paid into the insurance policy to have it pay out to your friend. To "Sign up", have someone old name you as their beneficiary on a life policy. When they die, elect to have the money paid out as an annuity for 20 or so years. You will receive the money tax free and can enjoy life with your friend.

Other than that, you will need to work like the rest of us, sorry.

Answer 4

My grandfather had some kind of policy he worked for carnege steel 40+ yrs ago - when he died my grandmother get $40 a month - she claims when she dies it does not stop -- my dad and uncle will get $20 each than on their passing it gets split 5 ways with the grandchildren

Answer 5

Did her grandfather pass away and she was the beneficiary for it? This sounds like she was the beneficiary for his life insurance and she decided to take payments for a certain period of time and those payments usually aren't taxable.