Tabloids have been speculating about family turmoil regarding the policy’s multimillion dollar payout.
Though news reports have focused on the many millions of dollars in debt Lisa Marie Presley was facing by the end of her life, it seems that she was also covered by a $35 million life insurance policy worth $35 million.
According to media reports, Lisa Marie Presley had taken out two separate policies.
The media reports have indicated that the life insurance policies Lisa Marie Presley had taken out were for $25 million and for $10 million. Though there has been talk of a third policy for $10 million, it has yet to be clear whether it was being maintained or if that particular policy had lapsed.
Before her death, Presley was reportedly working on attempting to cash in one of the policies, likely the $25 million one. The reason was that she would have used the money to pay off the $4 million in total debts she was struggling with. A TMZ report stated that she had already contacted the insurer and had completed the necessary paperwork in order to receive a $2 million lump sum. That said, there was reportedly a mix-up with the paperwork which meant that the policy didn’t end up being cashed in after all.
The life insurance policy was going to be used to help overcome debts in life but was never cashed.
At the time of her death, Presley owed $2.5 million to the IRS. Throughout her adult life, she spent an estimated $100 million. Once her debts are paid off, it’s expected that there will be about $30 million left, assuming that the third policy had indeed lapsed.
Presley had three kids, Riley Keough as well as her twins who are 14 years old, Harper and Finley Lockwood. The three children were reportedly named as equal amount beneficiaries in the life insurance policies. Unlike Riley, the twins are minors, so their money will go into a trust. Pricilla reportedly filed legal documents seeking to be trustee as she was originally named for that role, but Lisa Marie amended the trust in 2016, removing Priscilla and naming Riley as trustee instead.
That said, overall, this is an example of how life insurance can protect those left behind against remaining debt and other financial burdens and can ensure that dependents will have the money they need to maintain the lifestyle to which they have become accustomed.