My Friend Is Cashing My Life Insurance In Can I Stop Them?
Posted December 26, 2009 – 4:26 pm in: structured settlements FAQBecause of my living situation at the time i decided to get life insurance i couldn’t put it under my own name so i put it under a friends. i’ve been paying premiums ever since. now this friend decided to cash in on the insurence and keep it for themself. Is this legal? how could they be stopped?
Tags: Cashing, Friend, Insurance, Life, Stop, Them
8 Comments
It sounds like your life is insured — but your “friend” is listed in the policy contract as the [owner] of the policy.
The “owner” of the policy has the right to: transfer the ownership of the policy to another person; to change the beneficiary; or cancel the insurance contract. If there is cash value, they can take it. Understand that the insurance policy is a contract between the owner of the policy and the insurance company. Where the premium payments come from are not a consideration.
I do not know why you did this, but it was a bad decision. It is legal, and you can’t stop them from transacting with the insurance company. Sorry.
Yep, you can’t do a thing. Whoever owns the policy, gets to pick who gets the money if you die, and they also get to cash it out. It’s THEIR policy, not yours, regardless of you paying the premiums.
I can’t think of any reason why you wouldn’t have been able to put it under your name, but that slick move, obviously, is coming back to haunt you now.
Now, you’ll have to buy a new policy, and keep ownership of it.
Yes, it’s perfectly legal, it’s THEIR policy, not yours. Once you give them permission to own the policy, it’s theirs.
Stop paying for the insurance. Call the insurance agent or company and find out exactly who is insured and who the owner of the policy is.
Only the owner of the policy can cash it in. If you are the owner and the ex-friend cashes it in that is illegal. So, find out if your the owner or not.
Actually this policy should never have been written. Your friend probly has no insurable interest in your life. Tell that to the insurance company. They will know what that means. Then tell them you want all your premiums back because the policy should never have been written.
If you have problems call the insurance commissioner or your Dept. of Insurance in your state for help.
There’s probably not much you can do. If everything in the policy is under your friends name it would be difficult to do anything about it. If the premiums were paid through automatic withdrawal you might have a little bit of a case showing that it was paid for out of your account, however that would REALLY be stretching out on the limb for that one.
Because of your living situation? Life insurance is protected from creditors, law suits and just about everything else. When you put it in their name you gave it to them. It’s their policy and they can do what they want with it.
If you want to stop it then you should offer to buy it back.
That was poor planning from the start.
Lies always catch up to you.
The life insurance was in their name. The company insured THEM, not you. Your premiums have been gifts.
If your friend is listed as the owner of the policy, I don’t think there is much you can do about it. Sorry.
consult a lawyer, or kill your friend. ( I wouldnt call him or her a friend either)