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Life Insurance Policy?

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Life Insurance Policy?

Postby Cowyn » Fri Jun 16, 2017 8:22 am

This March, My parents moved out of their house in NJ(i was living with them) They relocated to Florida, I moved to NYC. A couple of weeks ago my dad was calling desperate from the call him. He neede me to switch the address that a statement was going to. Which I found weird (why couldn't he do it himself) It turns out it was for a life insurance policy, with a 5 figure value. I did what I was supposed to do, but then I thought.. Why?

My questions are...


1. Is this life insurance policy mine? My dad told me he got when I was 5 years old, I am guessing that when I turned 18 or 21 it officially became mine, and that is why he needed to contact me to switch the mailing address.


2. I want to start contributing to my own life insurance policy, I don't want him contributing to it anymore. Of course he and my mom are benificiaries, but I want absolute control over what goes or out (god forbid I fall on rough times, it has cash value) into it. How do I do that?

3. He kept me TOTALLY out the loop, which I found upsetting, but that another story. How can I have all ownership, etc turned over to me, if this is my policy?
Cowyn
 
Posts: 59
Joined: Fri Jan 10, 2014 6:50 pm

Life Insurance Policy?

Postby Mayne » Sun Jun 18, 2017 2:12 pm

If you are not the current owner, you do not get to change ANYTHING!!! I am shocked you were even able to change the mailing address.

This is a cheap policy, probably Gerber Life or something like that.
Are you sure it is on your life, or maybe on one of their lives?

You will want to buy your own policy on your own life, but I would wait until you have some commitments (kids, marriage, home ownership, etc).
However, do not use life insurance as a safety net or savings tool; it is not cost effective for either.


Buy term and you can purchase whole life when you start thinking about estate planning, where necessary.


Oh, and this is a little transparent.
What kid would not want to take money from their parents paid into a life insurance policy? This is a way to avoid estate taxes, so you should be considering it.
My thought, you want to get access to the cash value.
I don't know you, this is just based on the wording of your post.


Good Luck.
Mayne
 
Posts: 46
Joined: Thu Apr 03, 2014 12:30 am

Life Insurance Policy?

Postby Gustav » Wed Jun 21, 2017 4:19 am

Oh, this is one of these little Gerber Life insurance policies.

Google: Why I hate Whole Life Insurance

If you ever want life insurance, buy Term Life Insurance.

Do this if you have dependents that cannot live without your income.

Consider cashing out this policy when you get it.
Seriously.

To save for your future; open a retirement account.
A ROTH or even a savings.

Whole Life insurance is the wost way to save.
Horrible investment.

Targetted to minorities for some reason.
Gustav
 
Posts: 48
Joined: Tue Apr 08, 2014 7:24 pm

Life Insurance Policy?

Postby Yong » Thu Jun 22, 2017 3:40 pm

1.
Probably not.
If dad bought it, and dad's been paying for it, odds are, dad is the policy owner.
It doesn't necessarily automatically revert to you.
You'll have to ask dad.

2.
Child whole life insurance is a sucker game.
It's extremely expensive - very overpriced for what you get.
And it's not a "savings account".
It's a funeral payment plan.
If you want life insurance, go buy some - odds are, you can get it WAY cheaper than dad's paying for, for probably ten times as much coverage.

3.
You contact the insurance company and ask.


I think the scam bit means, child life insurance is a scam.
It's ridiculously overpriced.
Children rarely die.
The ONLY time it "works out" is if the child has something dramatic go wrong with them, where they they become uninsurable as an adult.


Look, the cash value on this plan, with you being 24, is probably . . . NOTHING.
You probably won't have more than $100 cash value, by the time you're 30.
That's the "sucker bet" part of this - about 10% of what you pay in, goes to cash value.
You're not going to have enough left, after you cancel the policy, to buy stamps.
There's this huge myth abounding that those $5,000 child life insurance policies are worth $5,000.
They're not, unless the child actually DIES.


Bottom line - DAD has been the one paying in all these years.
You have NO RIGHT to any miniscule amount of cash value that there might be, in a few more years.
Buy your OWN cash value policy, and throw your OWN money away that way, OR, start a savings account.
And get that chip off your shoulder.
Yong
 
Posts: 59
Joined: Sat Feb 22, 2014 5:46 pm

Life Insurance Policy?

Postby Victoro » Tue Jun 27, 2017 12:04 pm

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RE :Life insurance policy?

This March, My parents moved out of their house in NJ(i was living with them) They relocated to Florida, I moved to NYC. A couple of weeks ago my dad was calling desperate from the call him. He neede me to switch the address that a statement was going to. Which I found weird (why couldn't he do it himself) It turns out it was for a life insurance policy, with a 5 figure value. I did what I was supposed to do, but then I thought.. Why?

My questions are...

1. Is this life insurance policy mine? My dad told me he got when I was 5 years old, I am guessing that when I turned 18 or 21 it officially became mine, and that is why he needed to contact me to switch the mailing address.

2. I want to start contributing to my own life insurance policy, I don't want him contributing to it anymore. Of course he and my mom are benificiaries, but I want absolute control over what goes or out (god forbid I fall on rough times, it has cash value) into it. How do I do that?

3. He kept me TOTALLY out the loop, which I found upsetting, but that another story. How can I have all ownership, etc turned over to me, if this is my policy?

Update: It is actually with prudential.. so I dont know if its one of those scam ones..

Update 2: no dependants: hate kids so I doubt there will be...

Update 3: Kasey that is what I am stating: he got it for me as a little kid.. and once I hit 18 or 21 it had to have automatically become mine because my dad HAD to contact me in NYC to get the statments sent to him in FLA...I am 24 it makes no sense.. I would rather cash it out and invest it somewhere else... my job covers my living expenses and leisure.. so I wont waste it.. I feel my dad is trying to still play parent with me any trying to not let me have access to do as I please with it.

Follow 3 answers
Victoro
 
Posts: 48
Joined: Sat Feb 15, 2014 11:32 pm

Life Insurance Policy?

Postby Poldie » Wed Jun 28, 2017 1:10 am

Kasey that is what I am stating: he got it for me as a little kid.. and once I hit 18 or 21 it had to have automatically become mine because my dad HAD to contact me in NYC to get the statments sent to him in FLA...I am 24 it makes no sense.. I would rather cash it out and invest it somewhere else... my job covers my living expenses and leisure.. so I wont waste it.. I feel my dad is trying to still play parent with me any trying to not let me have access to do as I please with it.
Poldie
 
Posts: 60
Joined: Sun Jan 05, 2014 11:11 am


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