Tag: life insurance beneficiaries

What You Need to Know Before Using Your Life Insurance Policy as Collateral

Logan B.
life insurance policy as collateral

Putting up your life insurance policy as collateral first requires an understanding of what collateral assignment entails. By assigning any asset of yours as loan collateral, you’re legally pledging to give lenders proportional legal ownership of those assets in the event that you default on your loan. Life Insurance as Collateral 101 In short, putting up your life insurance policy as collateral on a loan means that you need to be ready to lose it in the event that you can’t pay your loan back. Before anything else, you need…

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Life insurance companies in Illinois owe $7.5 billion to unknowing beneficiaries

Marc
life insurance companies

Many insurers are keeping the money owed to beneficiaries who have no idea they’re entitled to a payout. Life insurance companies across the country are struggling with the issue of tracking down beneficiaries owed death benefits. While some states have very strict and specific laws about insurer practices in these situations, others make it possible for insurers to admittedly keep the owed money. In Illinois, this problem has risen to several billions of dollars owed to beneficiaries but kept by insurers. The practice has meant that life insurance companies aren’t…

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Life insurance companies must try harder to locate beneficiaries

Marc
life insurance companies

States say insurers should be making a greater effort to find heirs to ensure payments are being made. Life insurance companies have paid beneficiaries billions of dollars in unclaimed policy payouts. That said, if many states are successful, it could mean that even more beneficiaries will be receiving funds. Certain state actions aim to force insurance providers to make a greater effort to locate heirs. Almost two dozen states have passed laws pushing life insurance companies to look for policy beneficiaries. Among them, Illinois has become the most recent state…

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Pennsylvania fines life insurance companies for partial benefits payments

Julie Campbell
Life Insurance Process

The state has been slapping insurers with penalties for failing to offer a full payout to beneficiaries. Pennsylvania has started implementing a crackdown on life insurance companies that have been discovered to be failing to pay out full benefits to the beneficiaries of policies soon after those policy owners have died. So far in 2015, the state has recovered $70.4 million for almost 4,300 beneficiaries in Pennsylvania. This is all a part of a broader effort by the Pennsylvania Department of Insurance, which involves a number of other states, as…

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Casey Kasem Life insurance battle is now headed to court

Julie Campbell
Casey Kasem signature life insurance

The war within the legendary radio personality’s family over his estate will now be settled in the courtroom. The fights between the children and the second wife and widow of radio legend Casey Kasum (who died in the summer of 2014) didn’t start with the raging disagreements over his estate and the massive life insurance check that comes with it, but those are the latest issues being faced, and they are now headed to court to allow the legal system to try to figure them out. The life policy carried…

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