Life Ins/Annuity Company sending claim form to non-beneficiary surviving adult child?

[artzmel11]

Updating in case of future readers:​

This has been resolved. I wasn't aware of it, but Mom had a small life policy at the same company as the annuity. When I would call, I was being shunted over to the Life Co. instead of the annuity folks. Once I figured out what was happening, I got in touch with the right reps and they are sending me the necessary paperwork regarding the annuity. My brother was named a joint beneficiary on that life policy, so it was totally legit for them to contact him about it.

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Hello all - I'm kind of new to this so please let me know if I'm using incorrect terms etc.

My parents were badly injured in an auto accident 15 years ago. They took some of the settlement proceeds and bought an annuity policy from Big Ins. Co. to pay them a monthly benefit until December 2027, at which time they would be paid a final lump sum.

I am the only beneficiary on this policy, and the policy states that if both of them predecease me (both died this year, Dad in March and Mom in December), the policy continues in the same fashion except with payments to me as the successor.

Two questions. One is, they've sent me a claim form indicating that I'm owed $X, which is the same as the monthly amount my parents received. But it seems they're acting as if this is the sole amount they owe ("paying your claim in the amount of $X"), with no mention of continued monthly payments through 2027 and no mention of final payment. I've called 5 times and spoken to various people but no one seems to understand what the contract plainly states. Has anyone ever heard of something like this happening?

Two is, I just found out that they sent my brother the same claim form. He is not a beneficiary, and has not been in my parents' lives for the last 30 years, while I've been caring for them throughout most of this time period. Which is why they made him a nice (6-figure) gift in the will, but never told him about this annuity and did not make him a beneficiary. It seems to me as if Big Ins. Co. is interfering with my relationship as their beneficiary or interfering with their own contract with my parents (like I said, I don't know the proper terms). Similar question - has anyone ever heard of an insurance company going outside the contract to notify non-beneficiaries that they supposedly "have a claim"?

Thanks for any thoughts.

 

[levnishbar]

@artzmel11 It's a legal contract. If your brother isn't a beneficiary then he won't get anything. I'm not sure exactly why they'd send a form to your brother.

 

[artzmel11]

@levnishbar Thanks. I'm just shocked, and frankly very angry and upset, that they'd to that. He's been a pain to deal with as we've been going about the probate process - he took months to sign/have notarized/return the probate process acknowledgement forms.

He knows about his willed gift because we had to send him copies of the wills with the forms, but he did not know about the annuity. I feel like this has the potential to open a can of worms with him and am baffled why the company would do that.

Also feeling like part of it is my fault. They have his address because the form they sent me had a space asking about all children, and I didn't know enough at the time to wonder why they would ask this when they already had a (sole) beneficiary to hand. But I had also just filled out SSA forms where listing all surviving children was relevant - Mom and I had been fighting with SSA since March to get her payments corrected as survivor benefits (2 days after she died she got notice from SSA that they were going to pay her back benefits and I had to say, "Thanks, but too late") - and I guess I was just running on autopilot and filled in all the blanks on that insurance form, too.

Sorry, "rant off" as the kiddos say.

 

[easternpresent]

@artzmel11 The agent that sold you this annuity should be able to assist in advocating for you.

Sounds like wire crossed but they should not pay out to a non listed beneficiary. It’s a contract. They have terms to honor.

Would you be willing the share the product that was purchased? I’d like to review a spec contract

 

[dory69]

@artzmel11 I'm sorry for the loss of both your parents in the same year. I hope someone can chime in with some answers for you. If not, I'd probably consider seeing an attorney if we're talking some considerable funds at stake.

 

[easternpresent]

@artzmel11 Carriers are sometimes stupid. They are comprised of human beings and human beings make mistakes and send wrong forms, or not understand a question and give an improper answer.

Most of the battle with insurance carriers is getting to the right department and person who actually knows the information about your specific question.

Would you be willing to share the product that your parents purchased?

 

[artzmel11]

@easternpresent Thanks. The selling agent retired some years ago. Agree and understand about human beings etc. But it seems irksome though, that any service rep there can't simply pull up the details with me having supplied them the policy number.

Despite Dad's life policies having a really weird hiccough that delayed payment about 4 months, still that company was always prompt and professional in their dealings with us. And ditto at that same Life company when Mom passed (absent the hiccough, which she corrected in the interim). Ditto my dealings with their 3 banks, and 2 investment broker type firms. It's been "do this, sign here, we got your back".

Next time I travel over to their house I can get the paperwork, but the basic idea is that it's a 20 year annuity paid monthly at about 2K/month with a final payout at the end.

 

[easternpresent]

@artzmel11 I am asking for the product name or carrier so that I can pull a spec contract and also find the right people to reach out to.

 

[artzmel11]

@easternpresent Hi @easternpresent, sorry for the delay. Thank you very much for your offer of assistance! But I've gotten it figured out.

Each time I would call I'd give the account number and ask for structured settlements (this annuity was a Met Life structured settlement product), then the person on the other end would ask for her SSN.

Turns out the SSN triggered the intake representatives each time to send me to the Life Company, but I didn't know that was what was going on. I learned that she had a small life policy from back when she was a state university employee, not listed anywhere in the long list of life policies my Dad had kept. And that policy named my brother and me as equal/split beneficiaries, so it was completely legit for them to contact him.

What compounded the confusion was that the proposed life benefit was nearly identical to what the monthly annuity payment should be.

Now that we have that figured out, I got the Life rep to specifically put me in contact with structured settlements, who verified that acct number and say they will have papers to me within a few weeks.

Thank you again.

 

[easternpresent]

@artzmel11 I’m so happy to hear that there is a successful end to this. Thank you for sharing the update.

Best of luck as you continue to manage these affairs.

 

[artzmel11]

@easternpresent Thanks and welcome. Next stop, convincing Diamond Resorts (now Hilton Grand Vacations) that I really, really, really do not want to inherit their timeshare.

That's one thing I'm kind of mad at myself about. When Mom started getting sick so soon after Dad passed, it did not occur to me (but should have) to get her to apply for their "Transitions" program (where they basically repossess at no cost to the company, something they've been overcharging people for all along). Now, they don't want to talk to me despite having sent them notice and provided death certs and what not. They had a lot of points and their annual maintenance fees are $23K/year, and I'm trying to figure out how to keep them from going after the estate.