What is credit life insurance?
If someone passes away and they are divorced and the deceased had no will can the credit card companies try to collect from life insurance policies?
This question is not an issue dealing with credit. Rather it needs to be addressed to an attorney familar with inheritance laws and may vary depending on state. Try the message boards at www.prairielaw.com
If no probate can credit card debt be taken from your beneficiaries paid by life insurance and IRAs?
This is not a simple situation. The short answer is, maybe. There are a lot of "ifs" and it also depends on the state statutes of your residence. If you would like to discuss this, or feel I might be able to give you some enlightenment. Please feel free to email me.
Can credit card companies touch any life insurance left to an only child if the cards are in the deceased's name only?
No, but that doesn't mean they won't try. Some creditors are kinda "tricky" about getting their money. However, if you show them you are a well informed consumer and will stand up for your legal rights. They back off pretty quickly.
Can credit card companies take a life insurance policy to pay someone's large debt if they left no other estate?
Credit card companies cannot "take" anything. Due process of law always has to be followed. When a person dies, their assets and debts are filed in Probate Court,if state law requires it. Some life insurance benefits can be included as assets and used to pay debts. However, many policies have specif…ic clauses that do not permit the benefit(s) to be used for that purpose. The best option is to discuss the matter with the agent/company issuing the policy. ( Full Answer )
Answer . \nIf the issue is life insurance on the card holder, that is irrelevant, as that would belong to the beneficiary named on the policy. If it is life insurance that was purchased to pay off the account in case of the death of the account holder then it should pay as prescribed, after prope…r documentation has been presented. In a case where a person dies and they are the only one who was the account holder, no one else is responsible for the debt. The state probate court will handle the deceased's estate and decide how assets (if any) are distributed and debts are paid. The exception would be, if the deceased was married and the couple lived in a community property state. The surviving spouse would then be responsbile for the repayment of any debt(s). ( Full Answer )
What if you have disability insurance and become disabled can they take your car your credit and still ask for money when the disability insurance was purchased to cover that type of event in life?
\n. \nIt is your responsibility to see that the DI pays you and YOU pay the payments on time. rem your agreement with the lender stated that YOU would make the payments on a certain date. HOW you get that money is up to you.
Answer . \nNot that I know of.. What does one thing have to do with the other?
If someone dies with 10K in credit card debt and no assets but has life insurance does the credit company get the insurance or does it go to the beneficiary?
\n. \n. \n. \n Answer \n. \nDeath benefits are generally not subject to attachment for creditor debt. States establish laws concerning property that is exempted from creditor seizure. Without knowing the state of residency it is not possible to be more specific. You can find out what propert…y is exempt under the laws of the state where the person lives by searching "asset exemptions". (Example: Florida asset exemptions).\n. \n Answer \nIn many states the proceeds of life insurance are not part of the estate because they are proceeds of a contract to pay a third-party beneficiary, which promise of payment vests upon the death of the insured, so the insured (and the estate) do not receive any benefit. Since the estate has no beneficial interest in the proceeds of the insurance, the creditors would have no claim for this money (unless, perhaps, a surviving community property spouse is the beneficiary). ( Full Answer )
Does your dead husband's 500 credit card debt get passed to you if he has no assets but you received life insurance proceeds?
Answer . \nNot if you are smart about it. You do not have to pay his debts\nthrough his insurance policy. Inheritance may be another thing. The credit company could put a lien on the estate. The insurance policy is NOT the estate.\n. \n. \nY-THINK-Y
Is a surviving spouse responsible for a deceased spouse's credit card debt if the deceased had no assets except a death benefit from life insurance?
Answer . \nThe surviving spouse is only responsible for credit card debt if the account were joint or the married couple lived in a community property state; (Texas and Wisconsin treat marital debt differently than other CP states).\n. \nDeath benefits from life insurance with a named beneficia…ry or SS death benefit are not subject to creditor action for repayment of the deceased debts. ( Full Answer )
\n. \n Answer \n. \nCreditors can attach any assets of the deceased to make sure they are paid. If the debt is legitimate, the estate is obligated to pay. Credit card debts are among the most easily documented debts so it's doubtful that you can prove that the debt is not legitimate.\n. \n .… \n If the policy names a beneficiary the death benefits are not subject to probate procedures nor can they be attached by creditors for debts owed by the deceased. ( Full Answer )
What are the rights of a credit card company when someone dies owing money and has no estate but has life insurance?
\n. \n Answer \n. \n. \nIf the life insurance policy has a named beneficiary creditors are not entitled to any portion nor is the beneficiary legally obligated to pay any of the deceased's debts.\n. \nFamily members are not responsible for the repayment of the debts of the deceased unless t…hey were a joint account holder.\n. \nThe exception in some cases and relating to specific debts, a surviving spouse may be held accountable for the deceased spouse's debts regardless of how the account was held if the couple resided in a community property state at the time of death.\n. \n. \n Answer \n. \nMacky ... I don't mean to keep on stepping on your answers, which are most certainly well informed and wise....this is just to add or perhaps clarify.\n. \nthe questioner should understand that When someone dies, they have an estate. It may not have much, if anything in it, but legally, their final affairs must be resolved and accounted for. There is a probate, essentially the making and resolving of the estate, even if verry small/easy/basic required to do this (in most all States).\n. \nIf there is an insurance policy with a specific beneficiary, it will not become part of the estate. It goes to the beneficiary outside of the probate/estate. If there is no named beneficiary, or the beneficiary is the estate (which is the case in a very large number of insurance policys), the money would go there and would be distributed according to the needs of the estate and the laws of the State. Which would mean the debts of the decedent would have to be paid by it. ( Full Answer )
Not sure what you mean credit? Some allow you to take out a loan or actually cash in the policy. Contact the issueing agent.
Answer . Some companies check for credit and others do not. The larger companies like Allstate and Nationwide check. Small ones like AlfaVision do not.
Is life insurance considered part of deceased person's estate when money is owed to credit card companies?
No it is not part of their estate, because once the person is dead the life insurance benefits belong to the designated benificiery.Who unless it is their spouse, is not responsible for the deceased debts. Edit: Life insurance proceeds payable to the beneficiary(s) are not themselves subject to …collection by the deceased person's debtors. However some contracts, agreements, and loans do include the right of the debtor to collect from the borrower's heirs. You or your attorney should examine the terms of the credit card agreements to determine this. The face value of a life insurance policy itself on the other hand...if owned or controlled by the deceased person, for the benefit of their own estate or if no beneficiary is listed, or if the policy is gifted to someone else within 3 years before the decedent passed away... it IS included in the decedent's estate and subject to federal and possibly state estate taxes. ( Full Answer )
When a son is unmarried owns property has credit card debt who should he put as beneficiary on life insurance and why?
Answer . Think this would be a personal choice, are you asking if you are the beneficiary are you also then repsponsible for his debt as well? Not sure about that you will need to ask an attorney. I will tell you that my brother died two years ago, had mountains of debt, his ex-wife, and daughte…rs where the beneficiaries, received the proceeds and did not have to pay any of his debt, but suppose if the estate had been worth more that might've been different. ( Full Answer )
I have life insurance on myself and I list my parents as primary beneficiaries and my siblings as contingent beneficiaries because I'm single and want to leave something behind to them in case I die.
You can check your local phone book or online to find an agent andget quotes. Independent brokers are best as they represent amultitude of companies and can literally shop for the best policyto your specific needs and qualifications. But, here I can help youto mention top insurance company of USA: A…merican General, AmericanNational Insurance Company, Rais Insurance, Banner Life and RaisInsurance. They help you to cover best prices and individualcommitment to every client. ( Full Answer )
With a wide range of life insurance policies available in themarket today, it is important to know how to select the bestoption. With rising awareness about financial products and itsbenefits, an increasing number of individuals are investing indifferent types of life insurance policies. In return …for the insurance company's promise to pay, the purchaserof the policy pays a periodic sum of money called a "premium". Inmost cases, the premium can be paid monthly, quarterly or annually.If premiums are not paid as agreed, the policy may lapse. Thisquickly occurs in the case of term insurance which does notaccumulate "cash value". Cash value accumulates in "whole life"policies but not in "term insurance" policies. Cash value may be thought of as a savings account within thepolicy. If cash value has accumulated and premiums stop, theaccumulated cash value may be used to pay the premiums. Once thecash value has been fully used, the policy will lapse fornon-payment of premium. A person can buy insurance on his/her own life. Additionally,another person or entity, such as a business partner or acorporation, can buy insurance on another person provided that thatbuyer has an "insurable interest" in the life of the person to beinsured. An insurable interest essentially means a "stake" in thecontinued life of the person insured. The stake can be financial,based upon certain family relationships, or other reasons that theinsurer permits and State law recognizes. ( Full Answer )
Who can you insure for life insurance? . can you obtain a life insurance policy on some one other than your spouse or child? . Yes. You can obtain life insurance on anyone with whom you have an insurable interest. Each person has an insurable interest in his or her own life, and therefore c…an select anyone as a beneficiary. 1. Parent and child, husband and wife, brother and sister have an insurable interest in each other because of blood or marriage. 2. Creditor - debtor relationships give rise to an insurable interest. The creditor can be the beneficiary for the amount of an outstanding loan. 3. Business relationships give rise to an insurable interest. An employee may insure the life of an employer, and an employer may insure the life of an employee. ( Full Answer )
Life insurance is a necessity. It is cheap, especially if you areyoung and healthy. Even if you are older or suffer from healthimpairments, you can find life insurance companies which look morefavorably on your particular situation and offer you a good rate. Alife insurance policy can provide financ…ial relief for your familyat a time when they need it the most. Having no life insurancecoverage with dependent children and a spouse can throw a familyinto financial turmoil in the event of a premature death. Find outtoday how life insurance can change your life. Visit: Let's Insure, PO Box 1192, Chatswood NSW 2057, Phone: 1300 355 355 ( Full Answer )
What happens when mom dies and has no estate except life insurance and outstanding credit card debt does executor have to pay the outstanding debt?
Yes, the executor has to pay the debt. Debts are one of the primary reasons someone should open an estate. The estate has to pay off the debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.
Is life insurance considered inherited property that a credit card company can claim after the death of a mother for unpaid credit card debt?
Depends upon the State of your mother's residence, and the beneficiary of her insurance policy.. If the beneficiary was her estate, they might be able to recover the debt; if an individual was the beneficiary, unless that person was a cosignor of the debt, it is not likely they have any recourse.. … Have you checked to see if your mother's account had debt cancellation coverage?. Best of luck.. Rjbeeg ( Full Answer )
Life insurance is where you pay premiums periodically for a setnumber of years and then when you pass away the value of your lifeinsurance policy is awarded to the beneficiary you choose (usuallya spouse or your children) to pay for your outstanding debts,funeral, tuition, retirement, etc. so they d…on't have to pay forthose expenses out-of-pocket. ( Full Answer )
Life insurance companies may insure or guaranty your life insurancepolicy in one of two ways. First, a life insurance company may buyreinsurance to re-insure the losses they may pay out for their bookof life insurance business in any given year. Also, licensed lifeinsurance companies contribute to l…ife insurance guaranty funds. Alife insurance guaranty fund is a form of protection providing afund that pays out money to policyholders if their life insurancecompany is licensed in the state, and unable to meet theirfinancial obligations. Some life insurance guaranty funds pay out$100,000 -$500,000 per policy depending on the state, and theamount of life insurance you have. Many states pay out up to$300,000 per life insurance policy. Life insurance protection comes in many forms,and not all policies are created equal. It depends on variousfactors. While the death benefit amounts may be the same, thecosts, structure, durations, etc. vary tremendously across thetypes of policies. ( Full Answer )
Since Indemnity basically means - protection against future loss,credit insurance indemnity is almost like saying credit insuranceinsurance or credit indemnity indemnity. The meaning of the term"credit insurance" would depend on the type of credit insurance youare talking about. Business Credit Ins…urance indemnifies a business against excessivelosses due to their customers inability to pay for goods and/orservices purchased on credit terms (this would be purchased by thebusiness and losses are payable to the business). Consumer Credit Insurance indemnifies against a consumer'sinability to repay a loan or other obligation due to illness ordeath (this would be purchased by the consumer and losses are paidto the lender). ( Full Answer )
Call any reputable company. State Farm, All State, Prudential, and such. Please stay away from the staggeringly good offers that you'll hear of on the net and on TV.
Business credit insurance is a type of insurance that is purchased by businesses selling to other businesses of open credit terms. Business credit insurance guarantees against their business having excessive losses due to their customers inability to pay for goods or services purchased on credit. It… is sometimes calledaccounts receivable insurance or trade credit insurance. This should not be confused with consumer credit insurance (e.g. credit life) which is purchased by consumers. ( Full Answer )
Answer 1 Yes i have life insurance that can pay well to my family after mydeath. At least, they will not depend on some one else. If i willalive that time i would like to convert it as my pension to securemy further future. Life is so insecure, if something happen to youat least that amount will he…lp your family to live better. Else,you can get the information on Life insurance and about their plan:Rais Insurance. Answer 2 NO. While I would recommend life insurance in order to betterprotect your loved ones financially after your death (or at minimumpay for your funeral expenses), I am not aware of any legalrequirement to have life insurance in any district or any country.(There is a possibility that such a requirement may exist in someesoteric jurisdiction, but it is certainly not common.) So, you donot "have to have life insurance", but, if you are a wage-earner inthe family, you should have life insurance. ( Full Answer )
Credit shield insurance is a special type of insurance provided these days by credit card companies. Every individual is insured to a certain sum based on his credit limit and repayment capacity. Let us say Mr. X has a credit limit of Rs. 1 lac and he uses an average of Rs. 5000/- rupees in hi…s credit limit every month. ABC bank that provides the credit card provides the credit shield insurance through an insurance provider with the following clause. Life insurance to X for Rs. 5 lacs Purchase protection for X till Rs. 50,000/- This would involve a fixed monthly charge of Rs. 50 per month and then 0.1% of purchases made every month. Assuming X makes a purchase of Rs. 10000/- this month then his bill would be Rs. 10060/- (10000 + 50 + 10) 50 monthly insurance charge 10 purchase protection @ 0.1% of outstanding Assuming something happens to Mr. X and he expires before paying the bill then ABC bank would contact the insurance provider and then collect the Rs. 10000/- that he owes them and also collect the Rs. 5 lacs life insurance and settle it to Mr. X's family. This is credit shield insurance. ( Full Answer )
Where to get Life Insurance There are many fine company web sites that make life insurancequotes available on the internet. The problem with most quotes isthey fail to ask the right questions or do not know which carriersview certain underwriting issues differently. You are always in a better positi…on to speak with an independentlife insurance agent that can give you suggestions on how to makecoverage affordable. You may also get our free guide to lifeinsurance at from us at LifeNet Insurance Solutions. ( Full Answer )
Insurable interest refers to when someone (called Person A) wants to buy life insurance on another person (Person B). In order for Person A to buy life insurance on Person B, there must be an emotional and financial loss to Person A if Person B dies. You can't buy life insurance on some random perso…n. Insurable interest does not apply to beneficiaries. You can name anyone as beneficiaries, whether they are related to you or not. If you are planning to get an affordable life insurance, i recommend you visit the site below and get insurance quotes. The site will pull up comparable premiums between different insurance companies and show you the best quote. http://www.goodinsurancepolicy.com ( Full Answer )
Mostly families who have dependent kids have life insurance. And also people who been tricked into buying cash value life insurance. People don't buy life insurance. They are sold on it.
The beneficiary has to have an insurable interest in the insured. The insured has to pass certain qualifications in order to be insured.
There are many life insurance policies available in the market which offers you impressive features at reasonable premium. I would suggest you to get quotes from various life insurance providers and accordingly select a best plan which offers you good savings and features. I have purchased a life in…surance policy from Bajaj Allianz and I am quite satisfied with the offerings and it is significantly cheaper than other offline term plans. ( Full Answer )
Life insurance, as the name suggests, is insurance on human lives. Life insurance policies are considered to be "valued policies" because they are purchased in finite amounts, rather than designed to pay damages or the then-current value such as property insurance does. Life insurance comes in se…veral varieties, the main categories being term life and whole life. Term life insurance remains in force as long as premiums are paid, but has a definite termination date (such as 20-years). If the insured does not die during that period, the insurance expires and there is no remaining value. Stated otherwise, it may be said to represent "pure protection". In contrast, there is "whole life". A part of the periodic premium is applied to pay for the death benefit, and another part of it is applied to a savings element. The savings element accumulates slowly at first, and depending upon the nature of the policy, may be used to invest in an array of income-earning assets, such as mutual funds, that the insurer offers as "investment" options. The earnings of the policy is referred to as "cash value", and depending upon the terms of the policy, may be used by the insured or the owner of the policy for a variety of purposes, including borrowing it. If left untouched, the cash value may reach a point where it fully supports ongoing premiums such that the insured has to pay nothing more. "General insurance" is the term often used to refer to non-life policies, such as homeowners, auto, and other forms of property and casualty coverage ( Full Answer )
Anyone who has an insurable interest in you may purchase a lifeinsurance policy on you. However, the insurer may require that yougive permission and sign the application for coverage. Some peoplewho have an insurable interest in you may include your parents,spouse or partner, your adult children, bu…siness partners, oranyone who relies on you for some form of financial support. ( Full Answer )
Perhaps. State's enact laws that protect the consumer debtor's real and personal property. The concerned party should research the laws of his or her state relating to the garnishment of insurance and private retirement benefits for debts owed. Please note, all Social Security benefits are exempt f…rom garnishment for creditor debt, also military benefits, government pension annuities and federal or state public assistance monies. The concerned party should also keep in mind that even if such funds are exempt from creditor attachment it is still possible for a creditor to execute a judgment against a bank account where exempt benefits and non exempt monies are comingled. It is always preferable to hold protected monies in totally separate accounts. ( Full Answer )
Credit insurance is a type of life insurance policy purchased by aborrower that pays off one or more existing debts in the event of adeath, disability, or in rare cases, unemployment. Credit insuranceis marketed most often as a credit card feature, with the monthlycost charging a low percentage of t…he card's unpaid balance. ( Full Answer )
It's not something you were naturally born with. Unless you took out a plan with your bank or job or somewhere and are paying into it my guess is no.
You are going to need to find a local or well known life insurance provider. They will have you fill out papers and possible meet with somebody to discuss the terms and price.
There are 2 primary types of life insurance. Neither is "best"because they serve different purposes and may be more appropriateat different times in one's life. One type is "whole life", if which there are several varieties.This provides both insurance protection and within the policy is anelement w…hich may be called "savings". It is referred tyo as "cashvalue". Each premium paid is allocated between the actuariallydetermined amount (based on age, health history, and other factors)to provide insurance protection. Another portion of the premiumgoes into the "cash value" which may VERY generally be thought ofas a savings account. Different companies and different policies dodifferent things with the savings element-such as give the insuredan option to invest it, at different degrees of risks, intoinvestment vehicles that the company offers. Generally, the premiumpaid for whole life insurance remains stable and predictable, butit is a higher cost insurance than term life insurance. The cashvalue can be borrowed from the policy as a "policy loan" at aninterest rate stated in the policy. The other main type of life insurance is "term life". It is oftencalled "pure protection" because premiums go strictly to thepayment of the death benefit (and administrative costs). There arevarieties of term life such that the premium can remain level for aperiod of years, after which it increases, sometimes verysubstantially--so substantially, in fact, that there may be a pointwhen the insured is unable to continue the premiums at the newlevel and has to allow the policy to lapse. The additional dangerthen is if there has been an intervening medical issue, one may berendered effectively uninsurable despite the premium. Many people start a portfolio of life insurance that combines somewhole life and a great deal of term life (because it is relativelyinexpensive) to provide adequate coverage while their family isyoung and financial needs are greatest. As financialresponsibilities decline, the need for great amounts of lifeinsurance (and perhaps the need to pay increasing premiums) mayalso decline. In all events, life insurance has to be a part of an overallfinancial plan and should be purchased after advice and counsel ofa licensed life and health insurance agent. There are mainly 5 types of life insurance policies: Term Insurance Policy Whole Life Policy Endowment Policy Money Back Policy Pension & Annuities ( Full Answer )
Life insurance is a policy people take out to ensure that theirfamily receives a pre decided amount in the event of sudden deathor loss of income.Life insurance is means protection and securityunder financial crisis.There are mainly 5 types of Life insurance policy. Term insurance is themost basic o…ne. If something happens to you,your nominee will bepaid a lump sum amount, and ensures that your family can live withthe same standard of living as before.In Endowment policy, a periodic sum is received aspremium every month and a lump sum amount in case of suddendeath.There are many other insurance policies like Money Back LifeInsurance Policy,Group Life Insurance and Unit Linked InsurancePlan that can benefit you. Many insurance companies like Max LifeInsurance ,icici prulife offers best insurance policies. ( Full Answer )
The question should have been more distinctive as there are various forms of credit through insurance. When a medical claim get settled by an insurance Co, it may be credited to the account of the policy holder. Cumulative bonus gets credited every year adding to the sum insured. If you are an insur…ance agent, your commission will be credited to your account by the insurance Co. for business rendered by you during the month ( Full Answer )
Is it illegal for a credit life insurance company cancel a policy without notification and still charge the bank for payment?
I got an auto loan 19 months ago with my grandma as the primary and myself as the secondary. I put credit life insurance on it, for a total of about $568 extra, raising my monthly payment about 9-10 dollars a month. When my grandmother passed away unexpectedly, I tried to file a claim but was denied… because they cancelled the policy without notifying me. However, if this is true, they have been charging the bank for payments the entire time. To my understanding and with the research I have done, this is illegal? I asked the bank if I have credit life insurance on the policy, and they stated they I do have it, and it has never been cancelled. What can I do about this? ( Full Answer )
Does life insurance money have to be paid on credit card debt when a person passes away and it has a designated beneficiary?
Yes, the deceased's assets will go towards paying off their debts, before the remainder is distributed to the beneficiaries.
To apply for insurance from Lloyds of London, you may have to succumb to a credit check first. Depending on what type of insurance you are looking for, they may also do a background check.
Generally, the criteria for obtaining an insurance license involves an intense pre-licensing course of study, a criminal background check and specific educational requirements. I've never heard of a Department of Insurance running a credit check (or declining a license on this criteria), but it's un…likely that top-flight carriers would be very interested in hiring someone with poor credit. ( Full Answer )
There are many ways one might export one's credit insurance. The government website EXIM is likely the most reputable source of information concerning this process.
Joint credit life insurance is money paid to you or your spouse ifeither of your are ever arrested on drug charges.