This is a technical question about life insurance. In my WIP the young adult son of a murder victim has cut off contact with his mother. He knows that his father has been murdered, but he does not know that he is entitled to a life insurance payout (that she is the "contingent beneficiary" for). A couple questions: Do insurance companies make any effort to contact beneficiaries? Would the insurance company make any effort to track him down? He is living and working in another state, but out of contact with his mother (she'd be happy to keep the $$ for herself if the insurance company is unable to locate him). How much time must elapse before they can move on to the contingent beneficiary (his mother), or must she prove that her son is dead before she can get his portion of the life insurance? (Yes, she is an evil, conniving mama--that's why he's cut off contact with her.) Appreciate comments from anybody "in the know"--not speculation. My attempt at internet search for answers was unsuccessful. Thanks.
Was he actively hiding from his father--or actively hiding in general? Would it take a strenuous effort to find him? Has he changed his name, stopped using his Social Security Number, and so on? Apparently some states require insurance companies to search for beneficiaries: https://www.sun-sentinel.com/business/consumer/fl-life-insurance-death-search-bill-20160222-story.html I find it very unlikely that an insurance company would just hand over the money to the contingent beneficiary without requiring any proof of death of the primary. This link, which admittedly has the voice of someone with an axe to grind, indicates that if there's an excuse not to pay out(and an absent beneficiary that isn't proven to be dead seems like an excuse) the life insurance company will likely refuse to pay: https://lifeinsurancelawyernow.com/wrong-beneficiary-life-insurance-company-want-pay-wrong-person/ This one states "Insurers are now doing a much more robust search for beneficiaries," says Nancy Kincaid, spokesperson for...(snip) Insurers will sidestep any legal wrangle and avoid at all costs paying the wrong person. "If they make a mistake, they can't get the money back, and they'll end up paying double," says ...(snip).... "So if they get into a tight place, they will kick it to the courts." https://www.insure.com/life-insurance/steal-life-insurance-money.html
Yes, they will make an effort to track down beneficiaries. However, that can be difficult to do without all the necessary information provided. A relative would typically be pretty easy to track down. Without proof of death, a successor beneficiary isn't going to be able to bypass the primary benficiary
@ChickenFreak , Thanks for the help. Briefly, here is enuf of the storyline to help you know why I am asking: An 18 y.o. boy's father is murdered. He is furious with his mother, so he leaves b/4 the funeral w/no plans to ever return or ever see her again. He does continue to use his own name, gets a job in another state, so uses his social security number, will get a new driver's license (but 2-3 weeks later where I'm at in the plot hasn't yet). Because he is first beneficiary, she wants to find him to try to get him to sign over the $$ -- otherwise she is SOL on any of the $$. She, of course, could get a PI to locate him and I have plotted that she does, but it occurred to me that maybe the insurance company would find him doing due diligence. Some of this, in terms of my plot, has to do with timing. The mother, obviously, is not going to wait years, or not even months to find her son. I just don't want to write an inaccurate plot. The way I have it now is she is doing her own searching for him in hopes of convincing him to sign it over OR do him harm so it defaults to her -- evil mama! Thanks.
I work in the insurance industry. The insurance company will not just hand it over to a contingent beneficiary. Since he is 18, I would double check the state you are using for when someone is considered no longer a minor. If he is using his Social Security number they will track him down that way. He would receive a letter and forms to complete before they would send out any money. Why hire anyone to find him, why not hire someone to impersonate him. If she has his SS number she could try to use it to get the money. You said the father was murdered, the insurance company will not send any money out until there is an investigation with the LE. That's going to cause a huge block for anyone to get the money. Just be aware that she (evil mama) would be better off blaming the son for the father's death so he could not inherit the money. Since she is the wife she could than make a claim for the money, if she is not written on the policy the money goes to the estate and becomes part of that. However, it depends on the states laws so check that out. If she was divorced from the father, they would want a copy of the divorce decree and if the life insurance is in the decree as going to the son, Evil Mama is SOL. Although I think it goes to the estate so who is in charge of the estate. Lots of angles to think about, good luck!
@Maggie May Very helpful! Just the information I was hoping to get by posting—thanks so much. The murder was in the commission of a robbery. The victim/father was an innocent bystander (just happened to be in the store). Didn’t consider that there would be no payout until the perp was found—that solves a plot issue for me and opens another plot twist. Much appreciated.
While I do specialize in Auto Insurance, I can give some answer. Yes, they would be required by law to attempt to contact beneficiaries. You also have to keep in mind that insurance companies will delay payout for a life insurance policy if they suspect fraud. And if you think that police are ruthless, wait til you meet your SIU investigator.
