I'm beneficiary of a life insurance policy, didn't see this coming, what now?

[tinfoilhat]

I was asked during my 341 meeting (on 8/17) if I was expected to be the recipient of a life insurance policy, etc, etc in the next six months. How does one know how to answer this (not really the question at this time)

My attorney said to fill out the paperwork, get a check or find out the amount, and he'll see if the trustee wants it. It was a 4 month old policy so it's going to pay out under $600. My attorney said the trustee probably won't even bother with it due to the small payout.

I'm just wondering what would happen if I didn't send the paperwork in until the six months was up. I didn't think of asking my attorney this and probably won't.

So, what should I do?
One of my sisters is listed as contingent so I told her the deal with the trustee and said f it, you deal with this s. My 3 other siblings want whatever they can get their hands on so hearing about a trustee taking it didn't go over so well.

But my sister gave me the paperwork back, they told her as long as I'm alive no one can get this money (except me).

I think I'm just going to send it in, let the trustee look at it, tell my siblings I'm waiting the six months.

See if you read back, you might now realize why my 341 was no relief at all.

If you're the superstitious type you might want to knock on wood when you get asked that question. This sucks in so many ways it's unbelievable.

[HHM]

What life insurance policy only pays out $600?

In any event, just send in the paperwork.

Realize, so long as the event that gave rise to your right to receive the proceeds occurred before your filed, or within 180 days of filing, the life insurance proceeds belong the BK estate unless there is an exemption.

[music12]

it doesn't matter when you send the info in, it matters when you become entitled to the $$.

[tinfoilhat]

What life insurance policy only pays out $600?

One thats FOUR MONTHS OLD.

Thanks Music12 for reading my post.

[tinfoilhat]

What life insurance policy only pays out $600?

I've been thinking about this, and how much thought went into it.
Wouldn't it be just great if you could put $190 down and make three payments of $97 AND get a full benefit amount of $50,000?

It might make one think, it might make one read the supplied information again. It might make one use common sense and realize things do not work like the above scenario.

Allow me to explain. Life insurance usually has a maturity date, when that date is met the full payout will be paid out. It's really that simple.

And obviously if the maturity date is not met, they don't keep all the money put into it.

It was a 4 month old policy so it's going to pay out under $600.

What life insurance policy only pays out $600?

I'd love to hear the thought process involved in typing up a reply like this.

[LimpDisc]

I've been thinking about this, and how much thought went into it.
Wouldn't it be just great if you could put $190 down and make three payments of $97 AND get a full benefit amount of $50,000?

It might make one think, it might make one read the supplied information again. It might make one use common sense and realize things do not work like the above scenario.

Allow me to explain. Life insurance usually has a maturity date, when that date is met the full payout will be paid out. It's really that simple.

And obviously if the maturity date is not met, they don't keep all the money put into it.


I'd love to hear the thought process involved in typing up a reply like this.

I was actually wondering the same thing when you posted and I did read the entire post. Now that you explained that the policy did not reach it's full maturity date it makes sense. I had no idea there were policies like that available, but I don't know much about life insurance policies.

[bf2bf]

...
It might make one think, it might make one read the supplied information again. It might make one use common sense and realize things do not work like the above scenario.

Allow me to explain. Life insurance usually has a maturity date, when that date is met the full payout will be paid out. It's really that simple.

And obviously if the maturity date is not met, they don't keep all the money put into it.

I'd love to hear the thought process involved in typing up a reply like this.

Actually, his question was valid.

Perhaps, if you communicated clearer, instead of getting so defensive, you would get a better answer.

Life insurance payout is the policy's face value, that is the amount which is paid when the insured dies... So yes, it is possible to get a $50,000 payout with only three $97 payments.

What you're talking about is the "cash value" of a life insurance policy, which builds within certain types of policies (mostly "whole life" policies) as the premiums are paid.
If you "cash out" this cash value prior to maturity, then you get a lot less than what you paid into it.

So that probably was the "thought process" in replying to your question.

However, if someone died and you are indeed talking about a $600 death benefit payout after you paid $190 plus three $97 monthly premiums, perhaps you should sue your financial planner or the insurance agent/broker who sold you such "garbage". In this case you may not even need to file for BK.

[tinfoilhat]

Actually, his question was valid.

Perhaps, if you communicated clearer, instead of getting so defensive, you would get a better answer.

Life insurance payout is the policy's face value, that is the amount which is paid when the insured dies... So yes, it is possible to get a $50,000 payout with only three $97 payments.

What you're talking about is the "cash value" of a life insurance policy, which builds within certain types of policies (mostly "whole life" policies) as the premiums are paid.
If you "cash out" this cash value prior to maturity, then you get a lot less than what you paid into it.

So that probably was the "thought process" in replying to your question.

However, if someone died and you are indeed talking about a $600 death benefit payout after you paid $190 plus three $97 monthly premiums, perhaps you should sue your financial planner or the insurance agent/broker who sold you such "garbage". In this case you may not even need to file for BK.

Why is it that one person can answer the question straight and to the point?

I'm not asking the how's and why's of an insurance policy, it is what it is at this point so all of your reply is worthless to my situation.

I should sue my financial planner or the agent?
I smart enough to not even entertain that thought. Would you give a death benefit plan to a 71 year old with acute COPD? Would you look at his health record and say sure, he might get a year paid in before he dies, that'll be $1400 for us and $50,000 for them, sign him up.
Seems to me that they did their job and are giving the beneficiary the refund plus a percentage.

I'm sick of this bullshit. Every time I ask a question here it does a 180. Now we're talking about the in's and out's of life insurance. I. DON'T. CARE.

I now realize that I asked another unanswerable question. I guess I should have scanned and posted links to the policy and all correspondence with the company AND agent just so the READERS could understand why the payout is what it is, WHICH HAS LITTLE TO NOTHING TO DO WITH THE QUESTION.

The cash out amount was given because my attorney said the trustee most likely won't go after it, it's a valid piece of information beause it's a low dollar amount.

This site does nothing but piss me off with the ignorance of some people.

[Over our heads]

I haven't read the posts above. But here is my tought on the matter.

Yoou are only entitled to the proceeds of a life insurance policy if the insured dies. Do you plan on knocking this person off in the next few months? Is this person otherwise on their death bed?

For example, my hubs and his brothers are secondary beneficiaries for their parents. If both parents pass on, they are first. When we were asked about expected inheritances and such, we replied no, as we most certainly do not expect both of his parents to drop dead any time soon.

Is this policy yours? If so, are you planning to cash it out? If yes, check your exemptions, and try to exempt the cash amount. If you can wait, by all means wait.

And while I could be mistaken, but I was under the impression that only whole life policies and their cash value were of interest to the TT, and only if the insured was included in the bk'ing immediate family. spouse/children

[tinfoilhat]

i haven't read the posts above. But here is my tought on the matter.

Yoou are only entitled to the proceeds of a life insurance policy if the insured dies.

holy ****ing shit, are you serious?

do you plan on knocking this person off in the next few months? Is this person otherwise on their death bed?

actually "this person" is in an urn right now, thanks a lot. That takes a lot of god damn nerve to say shit like that.

i haven't read the posts above.

how do you think you can answer a question that you did not read?
Seriously, i do not get it, you didn't read anything and still write up a response? What is your response based off of?

i am the only beneficiary of my fathers 5 month old life insurance policy, he passed away 18 days ago, the only option is to cash it out.

**** this god damn forum, aside from maybe five people you're all clueless idiots. You may have experience in your unique situations--newsflash--that does not make you an expert in everyone elses unique situations. Some people realize this, most do not. That and top it off with 'i didn't even read the question but i'll comment anyway'

[Amy26]

I have read the thread and I am very sorry for your loss. Based upon your responses I can tell its very near and painful to you right now.

I personally know that I am by no means an expert on this "stuff" as many of us are not, however you did ask the question which seems to me knowing that everyone is as you say "clueless idiots".

Anyhow, I doubt anything would happen if you didn't file the paperwork. If the amount is as low as you say it is...you had no idea this would happen at the time and I assume when you were asked that question you said no. To be perfectly in line with regulations, yes you may want to send it in and just wait for the trustee to say no I don't care about 599 dollars.

Its not really an easy question to answer and tell you what you should do. I have gone through the process of dealing with estates and probate courts when I lost my fiancee years ago, so I know you don't really feel like dealing with financial things. I would just do what your attorney suggested and give yourself time to focus on your emotions and not acting out against "clueless" forum people.

God bless.

[tinfoilhat]

I have read the thread and I am very sorry for your loss. Based upon your responses I can tell its very near and painful to you right now.

I personally know that I am by no means an expert on this "stuff" as many of us are not, however you did ask the question which seems to me knowing that everyone is as you say "clueless idiots".

Anyhow, I doubt anything would happen if you didn't file the paperwork. If the amount is as low as you say it is...you had no idea this would happen at the time and I assume when you were asked that question you said no. To be perfectly in line with regulations, yes you may want to send it in and just wait for the trustee to say no I don't care about 599 dollars.

Its not really an easy question to answer and tell you what you should do. I have gone through the process of dealing with estates and probate courts when I lost my fiancee years ago, so I know you don't really feel like dealing with financial things. I would just do what your attorney suggested and give yourself time to focus on your emotions and not acting out against "clueless" forum people.

God bless.

Thanks for the kind words.
FWIW I didn't ask a bunch of clueless forum members a question, nor have I ever.
It just seems that every time I ask a question, the main topic gets answered by one of the maybe 5 educated people on this site, while the idiots put the main focus on things that don't even matter.
In this case, the point is I'm going to cash out an insurance policy, I have to, I've gone over the details. I'M ASKING ABOUT THE BK ASPECT OF IT HERE. ONE person gave a straight up accurate answer to my question based solely on the bk side of it. (thanks)

Now the others just want to argue about insurance policies, why? Why add BS to this? I've spent hours on the phone dealing with this non bk situation, not just insurance but everything to do with my fathers death.

I DO NOT NEED MORE BS SHOVED IN MY EAR OR EYES.

Idiots respond without reading, idiots focus on details that have very little to do with the question.

Intelligent people can provide an answer.

Understanding people can provide a non judgemental response like you have.
Thanks.

[anime-chicka]

I'm sorry for your loss..and I am so sorry that I'm laughing at your responses, tinfoil. I really am. Please understand that I'm not laughing at the situation itself, but the fact that I'm not the only crabby, b*tchy person today.

I will say that up until my father passed away in 2005, I had no idea how life insurance policies worked, though my ex-husband tried to explain it to me. The problem was that his way of explaining things was similar to a college professor trying to explain a complex mathematical equation to a roomful of Calculus students. I still didn't get it when he was done. The executor was much more understanding in explaining how it worked and how the money should be used. Thank goodness for him.

I hope that it works out for you in the end.

[Rahaton]

As one of the clueless here I have to say that I am still confused, I don't think your question was well formed. In the title you talk about being the beneficiary of a life insurance policy, than means a policy that pays you in the event of a death. But then you go on about the policy paying out and you cashing out the policy, you cannot cash out a policy that you are just the beneficiary of, you have to own it. It really is confusing.

So, just to clarify:

1) Who was the policy on, whose death would trigger the policy?
2) Who owns the policy? Who paid for it?
3) Who is the beneficiary of the policy?

For instance I could own a policy on my wife that has my daughter as the beneficiary. The implications are different for each person in a bankruptcy, and it is not clear from your description who you are in the whole situation.

[lifelesson]

My 2 cents and I am not an expert but did deal with my father in laws death and settlements of insurance.

Since you are getting the pay out because the policy is imature, and you stated you are handling all the matters related to your Dad's passing. (sorry about that I hope he's in a better place and didn't suffer) Did you have out of pocket expenses to off set the income? Like the paying of the funeral and remains processing? Maybe if you did you could and should include that information in with the fact that you are getting (not rich quick) the pay out.

I wish you luck and one thing about this site is everyone is in a different senerio and even the states have differenet laws. Understand no one ment to start an arguement with you via email. The questions asked back at you were to help the poster, of the reply, better understand and not mislead ya.

Prayers to you and your family. I'm sure it seems like another kick in the pants right now. Pick yourself up and dust off and get going again in the right direction. And if your siblings are anything like mine the sh*t hitting the fan from them is a real bummer, but it will in time it will wipe off and your life smell better.