I am a grandparent who owns my 16 year old granddaughter’s policy. I would like to cash this policy in as she is now covered by her parent’s. Can I do this?

  1. 196 POINTS
    Michael Richardson
    Owner /Agent, Guardian Senior Protection, Dallas Fort Worth Texas
    Grandparents are often considered extended caregivers of grandkids, so they usually have the right to purchase life insurance in the grandchild's name. These policies are typically fairly small, such as $5000-$10,000, and designed only to cover funeral expenses if the child dies as a minor.

    Some states require(check local state requirements) the child's parents to sign off on the policy, but most states allow grandparents to purchase the life insurance without the parents' permission or knowledge. Typically, the grandparents need basic information on the grandchild, such as his address and Social Security number.
    Answered on March 23, 2019
    flag this answer
  2. 3998 POINTS
    Contact Me
    Matt BenorePRO
    Founder, DenverWest Insurance Professionals, Inc.,
    If you are the owner of the policy then you have the authority to surrender your grandson policy.
    Even if the parents had to sign off on getting this policy you should not have any issues. I would call customer service and ask them what is the process to surrender the policy and what if any cash value is available.

    There most likely will be a surrender charge meaning if there is any cash value available, it will be reduced by the charge.
    The longer the policy is in force, the less the surrender charge will be.

    Good luck.
    Answered on April 3, 2019
    +0
    1 Thumb up 0
    +1 this answer
    flag this answer
  3. 63333 POINTS
    Contact Me
    Peggy Mace, Certified Senior Advisor (CSA)®PRO
    CEO, Outlook Life, Inc, Most of the U.S.
    The owner of a life insurance policy is the one who makes decisions about whether or not to keep the policy. The owner can also make beneficiary changes, change the mode or source of payment, or even change ownership of the policy to someone else. Many grandparents turn over policies on their grandchlidren to their grandchildren, making them responsible for future payments, or allowing them to then collect the cash value. But it up to you, as the policy owner, to decide whether to cash the policy in or make other administrative changes to it.
    Answered on June 25, 2019
    +0
    1 Thumb up 0
    +1 this answer
    flag this answer
  4. 723 POINTS
    Contact Me
    Everett Debrow, Jr.
    Principal Agent, Patriarch Associates,LLC, Opelika, Alabama
    As the owner of the policy, you can legally decide how to proceed with the policy. Besides continuing the coverage the policy provides, you have three options. They are the nonforfeiture options, and they guarantee that you will get some benefit from the premiums already paid into the policy. You can (1) get the present cash value of the policy, (2) take an amount of reduced paid-up coverage that is determined by the cash value, or (3) receive term coverage for the amount of time afforded by the cash value. The third option will automatically take place when nonpayment of premium occurs.
    Answered on August 1, 2019
    +0
    1 Thumb up 0
    +1 this answer
    flag this answer
    5. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home