[heathersmommy08]

Okay, my Grandma just recently passed away. I found out that she took out a $10,000 life insurance policy on me. So I called her insurance company and they told me that unless she put the policy in someone else's name, because she had herself as the owner. They said unless she done that, that I would have access to it. I asked her if that meant that I could get a check for it and she couldn't answer that. I don't really know much about this sort of thing or how it works so if anyone has any idea, please tell me. I was told they would cut me a check for it since my grandma was the owner, and because she is not able to make any more payments on it. Someone told me that they would give me a check for whatever she paid on it. Im lost.


Thanks!

[tickle]

It means you are not getting the l0,000, but since she has passed away and the policy will not be paid on any longer, then you will get the face value which is what she paid month to month. Add it up, how many months she paid and how much, and that's what you will get.

I think they meant that if you passed before her, then she would get the l0,000.

The smart thing to do would be keep the policy active, name a beneficiary and keep paying on it.so someone else in your family can benefit from it after you pass.

[heathersmommy08]

Oh okay, well I know she took it out when I was a year old and I will be 19 in 2 months... She has been paying on it ever since. I planned on keeping it going for my daughter and having my husband as the Beneficiary. I just wanted to find out all I could about it. Thanks though, you helped:)

[tickle]

Why not make your daughter the beneficiary. It would probably work really well as a buffer to further education when she reaches that age. Your husband doesn't have to the beneficiary. My son, now 26, and already finished with his education, is the beneficiary of a couple of policies and they may well be a good investment for him when I go. :)

[heathersmommy08]

I was thinking about doing that too, but either way she would be taken care of. She wouldn't be able to touch it unless something were to happen to me and until she turned 18. Im going to keep adding on to it though. Im also going to do that Gerber life grow up plan. She is only 5 months. My mom told me that now would be the best time to do it.

Thanks for your help!

[tickle]

Wow... if she is 5 months old now, that life insurance policy will really be a good thing for her. Good luck heathersmom :)

[twinkiedooter]

Basically your 10,000 policy grandma had on you isn't really worth much if you were to go and cash it in. No, you don't get all the money that grandma paid into the policy either, you only get a very small percentage. The idea of keep on paying for it sounds better since it's already in place and should not cost you much every year to pay in premiums either.

[ScottGem]

There are three names on a policy, the owner, the insured and the benficiary. The owner is the person paying for the policy. The insured is the person whose life is being insured. Often these two are the same, but not necessarily. The benficiary is the person who gets the benefits when the insured dies.

Now, if the owner dies, the policy is no longer being paid. The insurec can elect to continue payments or not. If the premiums are no longer being paid the policy may or may not lapse.