This is the full story. So my grandmother died, under her will it list 5 people who is living to receive life insurance money. One person listed died two week later and was living at the time of the death of my grandmother. I assume that the policy starts after the death of my grandmother and the person who died two weeks later is legally allow to collect that portion. However, if this is not true, then she has a living trust that the insurance money can go into under her trust that she setup three years ago. I also have the legal documentation stating that I can legally act on her behalf, receive money on her behalf even after she passes as long as the trust is still there and I am the trustee of her living trust. I have also heard that the insurance will normally pass the portion of the money to her living son legally even if it is not grandmother will. I am thinking the person who is handling this, is not providing all the information to the insurance company.

The person who is handling this also stated that the insurance company will only pay the living listed on the will and not the one who has passed away. I don’t believe this to be true. Also doesn’t insurance require a certified copy or the original copy of the person listed in the will to proof they are no longer living.

I want to know how the insurance company would handle this legally and what is my options.

  1. 54 POINTS
    Daniel Wheeler
    Risk Manager, Kovalev Insurance Agency, Massachusetts
    Life insurance companies are obligated to adjudicate the claim based on the living beneficiaries at the time of the policy holders death. If a beneficiary has subsequently died, the claim award would be made to the beneficiaries estate. The company will research any and all beneficiaries or next of kin and award the claim payments as obligated under the insurance contract with respects to the will and testament.
    Answered on June 9, 2017
  2. 63333 POINTS
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    There was more detail provided by the person asking this question, after I answered it. My previous answer was no longer appropriate. I defer to the other great agents answering this question. I apologize for this post, as there is no way to simply delete my previous answer. Thank you.
    Answered on June 9, 2017
  3. 730 POINTS
    Darald Novak AAI
    Retired Agent and Broker, Self Employed, Albany NY USA
    The life policy could list one or more beneficiaries (these entities can include individuals, businesses, foundations, charities, the estate, and/or trusts.) One would have to see and examine the most recent listing of the beneficiary/beneficiaries to determine how the insurance carrier will distribute death benefit. Each entity must file a claim form with the insurance carrier and most likely provide a certified copy of the death certificate. If the estate is named as (a) beneficiary, the will (if a legal will exists) will determine the distribution the estate would receive. If no legal will exists, the laws of the state determine the distribution of the estate's share. Get some good competent legal advice.
    Answered on June 9, 2017
  4. 406 POINTS
    Coby Higgins
    Licensed Independent Agent, Texas Insurance Alliance, Little Elm, TX
    The life insurance company will pay out a death claim to the listed beneficiaries as they each separately file. If a listed beneficiary passes away after the insured, that beneficiary's estate would file a death claim to receive that portion.

    If there are no beneficiaries listed, it would have to be claimed by the insured's estate and become an asset of the estate. Then the executor would have to follow the instructions of the will about disbursement of cash and assets in accordance with local probate laws. The executor should discuss this issue with an attorney. If you have questions about how this would play out through an estate, I would recommend you consult your own local attorney.
    Answered on June 9, 2017
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