Life Insurance Question California CA
Readers Question:
What happens to the cash value when you die?
Kristah
San Diego, CA
The policy holder is not entitled for the cash value of any life insurance policy that he has. The cash value is an asset that belongs to the insurance company which will be used to pay the claims of beneficiaries if the member happens to die. Now, it’s a different story if the policy holder would relieve the insurance company of the obligations in paying the claims by canceling or lapsing the policy.
The cash value in the policy is no longer needed by the insurance company, so they will give it to the policy holder under the terms of the policy’s “non-forfeiture” clause. It certainly has processes before you get it.
First, you’re dead and definitely you can’t cash a check. Second, it’s NOT your cash value. It’s just easier for the agent to pretend that it is. Don’t worry, dear, you can have it if you will just talk to them based on some laws and restrictions..
That’s just fair.
Have a nice surfing, pal and keep safe!
Loading ...