Mom to Mom

[KathyPet]

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@Lindsays Grandma wrote:

CARMIE, I agree with you one hundred percent.  When Lindsay was born I took out an insurance policy (which her dead beat father should have done) so that if anything happened to her father my daughter would collect a nice sum of money.  She is still a minor and I am still paying it but the cost is only $54.64/mo and has  never increased since its inception.  This policy is so that when her father dies my daughter will receive the money which will help her continue to support Lindsay, as long as she is a minor.

My daughter will not receive an inheritance

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@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

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from me, she got it while I am living.   She is an adult and I am not concerned with leaving her a large sum of money.  Adult children should not think their parents are obligated to leave them large sums of money.

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@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

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So if I understand this correctly you purchased a life insurance policy that insurers the life of your granddaughters father.  You pay the premium and your granddaughter is the beneficiary.  I guess I did not realize that someone could take out a insurance policy on the life of someone who is not related to the person purchasing the policy unless the person whose life is covered by the policy agreed to have the policy written.  I thought that the person whose life was covered had to fill out the application giving their health information etc.  It seems strange to me  that someone would be able to purchase a life insurance policy covering the life of someone unless the insured was aware that the policy was being written and signed off on the application for coverage.

[CalminHeart]

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@KathyPet wrote:

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@Lindsays Grandma wrote:

CARMIE, I agree with you one hundred percent.  When Lindsay was born I took out an insurance policy (which her dead beat father should have done) so that if anything happened to her father my daughter would collect a nice sum of money.  She is still a minor and I am still paying it but the cost is only $54.64/mo and has  never increased since its inception.  This policy is so that when her father dies my daughter will receive the money which will help her continue to support Lindsay, as long as she is a minor.

My daughter will not receive an inheritance

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@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

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from me, she got it while I am living.   She is an adult and I am not concerned with leaving her a large sum of money.  Adult children should not think their parents are obligated to leave them large sums of money.

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@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

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So if I understand this correctly you purchased a life insurance policy that insurers the life of your granddaughters father.  You pay the premium and your granddaughter is the beneficiary.  I guess I did not realize that someone could take out a insurance policy on the life of someone who is not related to the person purchasing the policy unless the person whose life is covered by the policy agreed to have the policy written.  I thought that the person whose life was covered had to fill out the application giving their health information etc.  It seems strange to me  that someone would be able to purchase a life insurance policy covering the life of someone unless the insured was aware that the policy was being written and signed off on the application for coverage.

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It is a violation of state insurance regulations (and federal/state securities regulations) to buy a life insurance policy on the life of someone when that someone doesn't know and sign for it.  If it was truly done without the insured's permission, good luck obtaining the proceeds.

Fyi, I worked for a huge insurance/securities company for decades and actually established the department that investigated these kinds of things.  

[Tinkrbl44]

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@LilacTree wrote:

Over 20 years ago I bought a whole life insurance policy with my four children as beneficiaries. This was not a term policy, it was supposed to last until I died.

After I turned 75 (I am now 79) the policy "changed" to some kind of market-based policy and now I have to pay three times the amount of my previous premium payment, plus the "cost of maintaining my account" increased due to my age.

Every year I now get a "lapse" notification for a set amount (about $1500 lump sum) in order to keep the policy in force.  That is on top of my premium payment which is very high now.

I fought this right up to the NJ State Insurance Commission and lost.  The insurance company insisted this was how the policy was always set up.  It wasn't, but I wasn't able to prove it.  I moved so many times, I could not find the original paperwork. The insurance company won.

I thought about letting it lapse, but I had put so much money into it, and I still want my children to receive the insurance benefits when I die.  I have no other estate, no other assets.  This is all they will ever get.

My kids have so far helped me pay this additional lump sum every year since this started.  Today I was advised by the insurance company that in order to stop this yearly threat of lapse from happening, I will have to again increase my monthly premium payment by several hundred dollars.  And they can't guarantee that it will not go up again anyway, because it's "market-based."  I do not control this, they do.

My question is would it be wrong of me to ask my children to help with these higher premium payments? 

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@LilacTree

First, I didn't read every post ... just the first page.  

Secondly, this just doesn't sound like a whole life policy, at all.    I think you need to request the original application and policy issued from the company ... they cannot withhold this from you ..... and have a professional review it.   

Some Insurance regulations vary from state to state, so some input here might just not be applicable in your state ....  just sayin. 

You have to weigh "throwing good money after bad" against the ultimate total pay out of the policy.    Maybe you should just cut your losses here.  

For many, insurance is a stupid concept ... you pay into the policy, hoping you never need it!    Of course, with car insurance, nobody gets mad because they paid the annual premiums ....   and didn't get into a bad car accident and get to use it!   

I wish I could offer more specifics for you .... but hope you get this sorted out.

[Lindsays Grandma]

First of all my granddaughter is not the beneficiary, my daughter, her mother is.  I have never heard that a person does not have the right to insure someone's life without their knowledge.  My daughter was still married to Lindsay's father and we all lived in the same house, he was fully aware of the policy and was there when the agent wrote up the policy.  I do remember the agent asking him if he smoked, he said yes and that increased the monthly payment.  I recently spoke with someone from the insurance company who advised me if I cancel the policy I will be reimbursed $4,761.  I don't think my daughter will have any problem collecting the proceeds should her ex die.

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@CalminHeart wrote:

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@KathyPet wrote:

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@Lindsays Grandma wrote:

CARMIE, I agree with you one hundred percent.  When Lindsay was born I took out an insurance policy (which her dead beat father should have done) so that if anything happened to her father my daughter would collect a nice sum of money.  She is still a minor and I am still paying it but the cost is only $54.64/mo and has  never increased since its inception.  This policy is so that when her father dies my daughter will receive the money which will help her continue to support Lindsay, as long as she is a minor.

My daughter will not receive an inheritance

---

@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

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from me, she got it while I am living.   She is an adult and I am not concerned with leaving her a large sum of money.  Adult children should not think their parents are obligated to leave them large sums of money.

---

@Carmie wrote:

My DH had one of these tern insurance policies that went up when he was 50.  Term policies are not lifetime policies, they are usually good for about 10-20 years, then they have to be renewed with new terms.

Because my children were not little any more, the insurance was not needed, so we cancelled it.

life insurance is not needed when you have adult children. It is needed if the children are young as a way to take care of them.  There is no reason to leave adults money,  As long as your final expenses can be paid, you will be okay without it.

---

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So if I understand this correctly you purchased a life insurance policy that insurers the life of your granddaughters father.  You pay the premium and your granddaughter is the beneficiary.  I guess I did not realize that someone could take out a insurance policy on the life of someone who is not related to the person purchasing the policy unless the person whose life is covered by the policy agreed to have the policy written.  I thought that the person whose life was covered had to fill out the application giving their health information etc.  It seems strange to me  that someone would be able to purchase a life insurance policy covering the life of someone unless the insured was aware that the policy was being written and signed off on the application for coverage.

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It is a violation of state insurance regulations (and federal/state securities regulations) to buy a life insurance policy on the life of someone when that someone doesn't know and sign for it.  If it was truly done without the insured's permission, good luck obtaining the proceeds.

Fyi, I worked for a huge insurance/securities company for decades and actually established the department that investigated these kinds of things.  

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