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Death Benifit or cash value?


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#1 wildpony1222

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Posted 08 November 2012 - 07:38 AM

My father took out a Whole Life Policy ($10,000) back in 1972. After 25 year's it was changed to an Reduced Paid up Endorsed Provision. The policy change was in 1997. At that time he had a cash value of just under seven-thousand dollar's . He passed away in 2011 at the age of 92 and had made me sole benficiary. Not really paying much attention to anything at this time because just 5 month's later my mom also passed on from a brain tumor. Question is..... Why did I not receive the death benefit of the Life Policy but received the cash value instead ? I may not have an issue here with the Ins. company but that year was really ruff. I took care of both of them here at home and just that few thousand more would have clearly helped that much more. The money has already been spent. And if I have a valid claim is it to late? Anyone have an answer ? I've e-mailed the company twice and after 2 weeks still no reply. Out here in California just waiting for the Big-One ! About ten-miles from the San Andreas!

#2 Fallen

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Posted 08 November 2012 - 07:59 AM

You don't say anything about having asked the life insurance company this question, but I'll presume that your father at some point took advantage of not having to pay for the life insurance policy anymore after a certain point but accepting that the face value of the policy would be reduced. Even if that weren't the case, it's not at all likely after having cashed the check that you'd have any recourse. It doesn't seem worthwhile to ponder this issue any longer. Had you said it was a million dollar face value policy and he'd chosen the reduced face value paid-up option to be $100k, then I'd understand some twinges of angst about it, but then it would be his choice to decide what to do at any point (including letting the policy go or taking a loan out on the cash value).

I'll echo PG's advisory "warning" with a twist: (Many) legal issues are complicated. Explanations and comments here might not fully identify or explain the ramifications of your particular problem. I do not give legal advice as such (and such is impermissible here at any rate). Comments are based on personal knowledge and experience and legal info gleaned over a quarter century, and every state has differing laws on and avenues to address most topics.  If you need legal advice, you need to consult (and pay) a professional so that you may have someone to hold accountable.  Acting on personal and informational advice from a stranger on the internet is a bad idea -- at least not without your own thorough due dilience/research and confirmation as it applies to your situation.  :)


#3 pg1067

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Posted 08 November 2012 - 08:14 AM

Impossible to address your questions without reading the policy and knowing the state where all this happened.

#4 FindLaw_Amir

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Posted 08 November 2012 - 10:38 AM

I agree with the previous poster, this issue is very difficult to address without having read the policy. You may wish to consult with a local Lawyer to address this matter.
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