From our “Ask a Question” Mailbag: Life Insurance Premiums Paid by Camden County Beneficiaries

Most Recently Update July 16, 2018.

“My mother is incapacitated and living in an assisted living facility in Camden County, New Jersey. She appointed my brother agent under her Power of Attorney. My mother has a life insurance policy that names me as beneficiary. My brother refuses to make the payment, so the policy will soon lapse. Can I make the payment?”

The Need to Probate in Camden County

Life Insurance Premiums Paid by Camden County Beneficiaries

You certainly can make the payment, as the insurance company does not care who sends the check. The life insurance company will only care if the check clears.

If the policy is a term policy, you should consider when the policy lapses. If the term policy only has one or two years remaining and your mother is in good health despite being incapacitated, then the payments might be lost, as the policy may lapse before her death. But, if the policy is some type of permanent insurance, and if your mother will some day move into a facility and apply for Medicaid, the state may require that she take the cash value of the policy out to pay her bills. If so, the cash value might be lost. There are many options available in this situation, and many potential outcomes. Our attorneys have dealt with the countless permutations of this situation.

More Planning Questions?

Life insurance is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: Life Insurance Premiums Paid by Camden County Beneficiaries

I hope that this article was helpful in explaining life insurance. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

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