Monthly Archives: February 2014

Life Insurance: The Case of the Ex-Wife and the Importance of Changing Your Beneficiary

The Importance of Naming a Beneficiary in Your Life Insurance Policy

Life is an inherently complicated process. Growing up, falling in love, getting married, and in recent times, getting a divorce are all part of life’s cycle. Divorce, as we know, can be a very emotional and difficult time for the individuals involved and their families. When you think of the good times and the bad, and things get to a point where you’ve decided that life would be a happier prospect sent away from someone who was the love of your life, often referred to as your ‘better half’ it’s never an easy decision to make, and the feelings of frustration, anger and emotional turmoil turn your life upside down.

Imagine this; all the assets have been distributed in a satisfactory manner, all legal proceedings completed, and both the husband and the wife have moved on with their lives. Someone else enters the husband’s life after a point in time and he decides to take the plunge again. He’s happy in his new life with his new spouse and everything is going well. Suddenly, he meets with an unfortunate accident which costs him his life. He was a man with foresight, he knew his company had taken out a life insurance policy on his name when he was working there, and his now widowed wife would have nothing to want financially.

Many a times though things don’t pan out like they should. The husband may have forgotten to change the beneficiary on his life insurance policy. His ex-wife is still listed as the beneficiary. What happens then?  Who gets the proceeds from his life insurance policy?

Remember, Federal Insurance Programs Prevails over State Law

One might raise the point that every marital settlement has a waiver clause included, and this is true, but legal precedent indicates that in quite a few cases, a weakly worded marital settlement waiver has allowed the spouse to enjoy benefits of an insurance payout. There is also protection offered by state law for just such instances where oversights or a long lapse in time means the husband/wife have forgotten to have the named beneficiary changed, by means of this protection, the insurance money received goes to the widow not the ex, but this too isn’t completely watertight.

But not all states practice this law. Take for instance the recently concluded Hillman vs. Maretta case that played out in the supreme courts and was all over the news. In this case, Warren Hillman during his tenure as an employee of the federal government cited his then wife Judy Maretta as the named beneficiary in the policy he was a part of in accordance with the Federal Employees’ Group Life Insurance Act (FEGLIA). They divorced a couple of years later, and four years after their divorce, Hillman re-married but forgot to rename his new bride Jacqueline as his beneficiary in the FEGLIA policy.

He died six years after this, his most recent marriage, and Jacqueline assumed she would receive the benefits from his FEGLIA insurance, so imagine her surprise when it went to his ex-wife; Judy Maretta instead. Since she resided in Virginia, she took advantage of the Commonwealth of Virginia’s statute that pertains to divorce and insurance benefits, revoking the ex-wife’s access to such benefits after

divorce and offering them to the widow instead. She won the case in the Fairfax County Circuit Court, but Maretta then appealed to the Virginia Supreme Court, which overturned the initial verdict. Jacqueline Hillman then further appealed to the US Supreme court, which held up the verdict that Maretta is entitled to the benefits on the basis of previous Supreme Court verdicts where it was decided that federal insurance programs preempt state law. Simply put, this means that even if you bequeath all you have to your wife in your last will and testament, if your ex-wife’s name is listed as the beneficiary of your life insurance policy, the proceeds will go to your ex-wife.

This is just one of the many such cases that occur year after year. In all the upheaval that surrounds divorce proceedings, while obvious things such as changes in the will and bank accounts are made immediately, it is easy to forget an innocuous detail such as the named beneficiary in an insurance policy taken out years, even decades ago. Such negligence can potentially cause a whole host of problems though, and must be nipped in the bud as soon the divorce has been carried out.

The Importance of Naming a Beneficiary in Your Life Insurance Policy

Make sure to change your named beneficiary in all insurance policies so that your widow isn’t left high and dry if the unthinkable happens, after all, what is the point of an insurance policy if your recently widowed spouse doesn’t even end up receiving the benefit? AccuQuote also recommends that you name a contingent beneficiary. A contingent beneficiary is the person who will receive death benefits should the named beneficiary (or first beneficiary) die before you do.

Author Bio: Frank Mitchell has worked as a life insurance agent for 10 years. After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.

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The Many Benefits of Having Insurance

   An insurance policy is a written promise for reimbursement when there is a loss. This reimbursement is made after the insured has paid in a specific amount of money on a regular basis to cover hazardous situations. An insurance policy is considered a shift of risk from one object to another in return for a specified amount of money. The insurance company will evaluate the item insured, study the size of risk involved and make a promise by signing an agreement with the insured to pay an agreed amount of money if the insured suffers a loss.

Insurance comes in many types according to the risk the policy insures against. The most common type of insurance is car insurance. Of course, the benefits of having car insurance is obvious, as using a car is no longer a rarity and because car accidents are fairly common and frequent today. It’s fairly easy to buy car insurance from a Nashville insurance company, and in most states, specific types of car insurance are compulsory. Consequently, having car insurance gives you the benefit of repairing your vehicle at the expense of the car insurance company. If you happen to live in a large city, you will probably experience just how useful having car insurance is.

Another popular type of insurance is homeowner’s insurance. This covers any potential hazard affecting your home. If a neighbor accidentally floods your home, should an explosion take place or should there be a natural disaster, your home insurance covers these risks offering you the benefit of not being homeless after the incident.

No one should forget about health insurance. Health insurance is a system created in partnership with the state. This gives a person the benefit of having their hospital and medical expenses covered if they need medical attention. The benefit of such insurance is when it comes to a serious medical illness or a surgical intervention that someone with a normal income wouldn’t be able to afford. Just as common is travel insurance. Travel insurance covers medical and hospital expenses if something happens while you are traveling abroad.

These are some of the more common types of insurance. The list is long, and the benefits are many for having an insurance policy.

Get To Learn Whether You’re Auto Glass Services Are Covered In Your Auto Insurance

   Auto insurance cover is one of the most crucial pieces of documents a motorist is obligated to have by law. This is because it covers you and any other second party in case of any instances or accidents while on the road.

With auto insurance, one of the things many motorists are keen on finding out is whether auto glass replacement services are covered in their insurance covers. This is because the auto glass plays a crucial role in your vehicle. It shields you from the elements such as rain, prevents foreign debris such as dust from getting into your vehicle, and also ensures that you and your passengers are safe in the car.

There are several kinds of auto insurance covers, with each covering different kinds of scenarios. But, if you happen to own a comprehensive auto insurance policy, you need not worry as you are almost certainly covered for any auto glass repair and replacement.

Auto glass services are available in Katy, TX as there are numerous companies which are approved auto glass companies within the area.  These companies are certified by major insurance companies, hence, are capable of offering solutions for your auto glass needs.

These claims may include auto glass insurance claims involving replacement and billing, all done in a swift, professional way. Most of these companies offer aftermarket and original equipment manufacturer quality glass as well.

One great advantage of OEM (Original Equipment Market) glass over aftermarket glass is that it is stronger than its counterpart.  The price is also pocket friendly; thereby you get the best quality at the best market price.

Once you have replaced your windshield, you have to wait for a while until the bonding is firmly dried before driving. With OEM, the typical wait time for this to happen is around 30 minutes, whereas the aftermarket glass takes around 24 hours.