Who receives pension benefits after death, even if another beneficiary is named?
A qualifying spouse, because spouses have rights under pension law.
What is probate?
Probate is the legal process where a will is validated as the most recent and valid will of the deceased.
What are the four options for pension funds when leaving an employer’s pension plan?
- Transfer to a LIRA
- Transfer to a new pension plan
- Purchase a deferred/immediate annuity
- Transfer to a life income fund (LIF)
Who determines how a death benefit is paid out?
The policyholder. They may restrict how funds are paid, and those instructions must be followed even if the beneficiary prefers a different method.
Who is the annuitant grantee/payee?
The person who will receive the annuity payments.
Who is the beneficiary/payee in an annuity?
The person who receives remaining benefits, if any, after the annuitant’s death.
Why might a life insurance claim be denied under public policy?
If the beneficiary murdered the life-insured, as profiting from a crime violates public policy.
Who else, besides a named beneficiary, could claim a life insurance policy?
- The policyholder (if outlives beneficiary)
- Assignee of policy (e.g., for a loan)
- Claimant under a court order (e.g., child support)
What happens if there’s uncertainty about who should receive a death benefit?
The insurer can remit the funds to the courts with a statutory declaration, and the court settles the matter.
Whats the time frame for a life insurance claim to to be paid?
30 days provided their is significant proof
What document would be required to establish proof of death in a life insurance claim
Funeral director’s statement
When is proof of age typically established in the insurance process
During the application process
How can irrevocable beneficiary be changed?
Only With the irrevocable beneficiaries consent
A policyholder changes the beneficiary of their life insurance policy through a new will but forgets to notify the insurer. When the policyholder dies, the insurer pays the proceeds to the original beneficiary listed on file.
Explain who is responsible for resolving the dispute and whether the insurer is liable for the payment.
The insurer is not liable because it acted in good faith based on the most recent beneficiary designation on file. The new beneficiary must pursue the original beneficiary to recover the proceeds.
What is required to make a claim?
Claim form, documents proving age and identity along with proof of death
On a life insurance policy, who would usually be “the claimant”?
The beneficiary
On a life insurance policy, the claim usually begins upon the death of the life insured. It would be the named
beneficiary who would typically file the claim with the insurance company-
To what extent is the insurer required to obtain a probate copy of a will prior to paying a death benefit?
Insurers do not require probate In all cases
An insurer must receive sufficient proof that a claimant is entitled to receive the death benefit. However, the insurer does not always require probate.
