Life Insurance Claim Question

  |     |   113 posts since 2013

Thought I would see if any other readers have had to deal with this issue.

Our father passed away October 2013. My three siblings and I were listed on his life insurance policy.Three of us submitted our claim and received our payment. One of my siblings is dealing with a mental health issue and did not process the paperwork. Received a call from the life insurance company last week that they did not receive paperwork to release the funds and if they do not receive soon the money will go to the state. Once the money goes to the state is there anyway to recover? If someone is suffering from mental health and does not comprehend or follow through on any financial issues is there anything that can be done if they do not agree to be assisted or to have a power of attorny assigned to them to handle their affairs?

  |     |   2,893 posts since 2010
The person has to fill out claim papers to get the money from the state.  If someone has a POA they can do it with ID and a copy of the papers. Maybe you
can get the form and fill it out and have your sibling sign it. ID such as DL or other things are required to send in with the papers when they are signed. They may not send the papers to you without ID. You can call the treasury department of your state and tell them of the situation and ask what can be done. On our state site we can print out the form and sign it. 
I have done it with BOA that had money for my husband. A $50 reward from their credit card but BOA said he had none. Then 5 years later it was on the state site. He had passed away but it took maybe only 2-3 weeks to get it. 
Maybe you can visit your sibling and help him with the papers. 
  |     |   2,603 posts since 2011
I recently had a similar problem with a mentally retarded sister who just recently passed away.  I needed to make another family member the beneficiary of a policy to use to help pay for burial expenses and the insurance company rep was kind enough to go see her while she was still alive and witness her X (since she could not write her name) on their form and they changed the beneficiary and paid out the money to the family member upon her death.   This may have been going above and beyond the call of duty for an insurance company but there are ways to get things done if you explain your problem to the company and can get their help.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.