Location: Georgia
I got divorced from an insurance agent about 10 years ago. Needless to say we each had several life insurance policies. On me, we had 2-20 pay whole life policies worth $25,000 each and one term policy for 500,000. I wasn’t interested in keeping them, but he was. He has since paid the premiums. Recently, I’ve been receiving notices from the company about unpaid loans and premiums. In 2017, 2019, and 2020 he took loans from each of the 20 pay policies. I had totally forgotten this until I was on the phone regarding the notices I have been receiving. He requested the loans, had the checks sent to me and then asked me to cash them and give him the money. Apparently, he hasn’t paid these loans back. When I called today, the policies are at the point where they are taking cash value out of the policy to pay the premiums. Up until this point, I thought I was the insured, but it turns out I’m also the owner. Would it be legal for me to cancel the policies and take the cash value that’s left or is it wrong because I haven’t been the one paying the premiums? We are not on good terms so he can’t really take anymore loans and ask me to cash them…I’m just surprised he’s paid them for as long as he has.
Comments
As owner you can do whatever you want with policy. Keep it or cash it.
if you’re the owner of the policies you’re the only one who can cancel them and it sounds like you should do so