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  1. #1

    Default Life Insurance Policy on Son with Father As Beneficiary

    Back in the 1980's, when i was in college, my father took out a life insurance policy on me naming himself beneficiary. I don't remember the details or how he even got me to sign it but I always trusted him. He said he didn't want to be responsible for my school loans if something happened.

    The policy was cancelled in the late 1980's. The loans only totalled about 7,500.00 to 10,000.00. I'm sure the policy was worth more. Is this common? I'm not sure about all the details since it was son long ago.

    Effectively i was the owner of the policy

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,395

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    I don't know that it's common, but it's not unheard of and it's perfectly legal. What is your concern?

  3. #3

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    It's a self-esteem issue

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    there is no "effective owner". There is an owner and then there is everybody else. Unless you signed the contract to purchase the policy or your father listed you as owner, you were not the owner. So, were you or your father the owner?

    If you, that would mean you either cancelled the policy or failed to continue payments on the policy and it was terminated.

    If your father, then he was allowed to do whatever he wanted to with the policy.


    have the loans been paid off? Did your father secure the loans or co-sign on your loans?

  5. #5
    Join Date
    Sep 2011
    Location
    Oklahoma
    Posts
    232

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    He owned it. You just have to sign it because you can't take out life insurance on someone without them knowing it. It's common for parents to take out policies on their children for various reasons. I own a 15 pay whole life on my son.

  6. #6
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    Agree; if your Father took out the policy, he should have been the owner & the
    one paying the premiums. (& he could name himself beneficiary) It was his right to cancel the contract or stop paying premiums as owner. You would have had to sign allowing him to take out the ins. on your life. (A young child under a certain age would not have had to/couldn't but you were of college age.)

    What he did can be done & is legal. Generally if someone takes out ins. on another, the person taking out the ins. is the owner, premium payor & beneficiary.

    edit to add info - The bottom line is since the policy was cancelled in the late 80s,
    there is nothing that can be done re the policy at this time.

  7. #7

    Default Re: Life Inssurance Policy on Son with Father As Beneficiary

    I have no idea who owned it. It must have been me but my father paid the premiums. It's so far in the past. I was using "effectively" as an adverb, meaning, as a consequence. My father paid the premiums. By the time he cashed it in after cancelling it I think it was worth a lousy $80.00 (eighty) USD

    I'm not looking to do anything "re the policy at this time," I was just curious to know if it was odd. It's just an old memory that makes me think he didn't love me. But that's not a subject for this forum.

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