My mom has a small whole life policy on her boyfriend. She pays the premiums and she is the beneficiary. She suddenly passed a couple of weeks ago. She was given 6 mos, by the doctors, but only made it two months. So, we didn’t get a chance to change the beneficiary to me. I know her boyfriend won’t be able to make the premiums. We really don’t have anything to say to each other and he has his own house. So, I don’t anticipate seeing him in the near future. I had full power of attorney on my mom. I know that expired when she died. I also know her boyfriend has his own policy. My question is, can I get the cash value from this policy? I will have to close my mom’s bank account but the premiums are automatically withdrawn. I don’t want to keep paying them myself. There wouldn’t be anyone to inform me when he died anyway. He’s old and not in best health. Should I just give him the policy info and let him deal with it? I could use the money especially now. Don’t suggest a lawyer because I couldn’t afford it and the cash value is only $1500.
I’m sorry for your loss.
I hope you and your family find comfort as you celebrate your mom’s life.
I’m not an attorney, and I have to say, this situation is complicated. Handling it without a lawyer might be difficult.
We know your mom was the payor, beneficiary, and possibly the owner of the policy. If no successor owner was named, the policy would become part of your mom’s estate and go through probate, which means getting attorneys involved.
If your mom’s boyfriend was the owner, he would have the rights to the policy, regardless of who paid for it.
You might want to reach out to him, explain that you’re settling your mom’s estate, and ask him to transfer ownership to you by submitting the ownership change form. This might be your best option.
The beneficiary will get the death benefit of the policy. I hope it was you… I am sorry for your loss.
Thank you, but my mother was the beneficiary. We didn’t have a chance to change it.
Is she the policy owner? Paying premium would assume she is but it’s possible she’s not. Did she execute a Will? If you’re the named beneficiary of her estate then you could inherit the policy.
I reviewed the policy, and he’s listed as the owner. There was no will, and we don’t have much. I’m the only one left in our family.
I’ve had enough of dealing with insurance companies. I legally changed my name 20 years ago, and my mom told me she updated her insurance to reflect that. I asked her about it several times over the years, but she never did it. I had to handle that myself. It wasn’t difficult since I had the paperwork, but it was still frustrating.
First, call the insurance company and inform them of her death. Ask what they need from you to transfer ownership to you as the next of kin. You need to become the policy owner before you can take any further steps.
Once that’s done, contact them again to find out how to cash it out and ask if there are any tax implications.