Navigating Life Insurance Claims and Financial Advice
![Navigating Life Insurance Claims and Financial Advice](https://investorshangout.com/images/blog/ihnews-Navigating%20Life%20Insurance%20Claims%20and%20Financial%20Advice.jpg)
Understanding Life Insurance Claims
Dear Liz: My mother died last year. I discovered she had two old life insurance policies written by companies that no longer exist. How can I determine which modern insurance company is responsible for policies written by these old companies? How can I submit a claim? My mother was born in 1932. The first policy began in 1939 for $350. The second began in 1943 for $600.
Answer: It’s not a given that a modern insurer still has these policies, but it’s possible. You can start by entering the old companies’ names in an internet search engine to see whether new owners are mentioned in the results. If that doesn’t work, contact the insurance department in the state where the old company was headquartered because it will have records of mergers or other changes.
If the company went bankrupt, you’ll need to consult the guaranty association in the state where your mother lived. State guaranty associations protect policyholders when an insurer defaults or becomes insolvent. The National Organization of Life and Health Insurance Guaranty Associations can assist in finding the correct association to contact.
Another option is to check the life insurance policy locator service offered by the National Association of Insurance Commissioners. You’ll need to input your mother’s Social Security number as well as her dates of birth and death to search for any claims linked to her name.
Also check the unclaimed property offices of any states where she lived, as you may find relevant information regarding her policies.
Choosing a Financial Advisor Wisely
Dear Liz: Do you have any general advice for choosing a tax preparer? My financial advisor has recommended switching my 403(b) contributions over to Roth 403(b) with the same investment plan. I am worried that this could put us at risk for a higher tax bracket currently.
Answer: Ideally, a financial advisor wouldn’t recommend switching to a Roth option without knowing a fair amount about your current and future tax situations. Otherwise, the advisor wouldn’t be qualified to determine whether giving up the current tax break is likely to pay off later.
Unfortunately, not all financial advisors are truly qualified to give the advice they do. Some, particularly those advising people about 403(b) investments, are more focused on sales than on providing fiduciary guidance. Therefore, it is imperative to seek out trustworthy sources when choosing your financial advisors.
You can get referrals to tax professionals from various organizations advocating for fiduciary standards, ensuring they prioritize your interests over their own.
Impact of Spousal Death on Credit Limits
Dear Liz: You’ve mentioned how important it is for spouses to each have credit cards on which they are the primary account holder. My husband died last year. We had a credit card with statements that showed the charges we each had made on our separately numbered credit cards. I found the account was in his name only. I had to get a new credit card in my own name, and the credit limit dropped from $75,000 to $7,000. Hope this warns others.
Answer: It bears repeating that most credit cards these days are not joint accounts. If two of you are using a card, one is probably the primary account holder and the other an authorized user. After a primary account holder dies, credit card companies are often willing to work with surviving spouses who were authorized users to establish new accounts, although the limits may differ significantly from the original.
Advising individuals to ensure both spouses have their own credit accounts can help prevent complications during such emotional times. Proper planning can avoid future discomfort caused by sudden financial constraints in unexpected scenarios.
Seeking Broader Financial Guidance
For further financial advice, consider getting referrals from organizations representing fee-only fiduciary planners. Many financial advisors are committed to acting in your best interest and can help with estate planning, retirement savings, and tax strategies. Furthermore, educators should familiarize themselves with resources dedicated to helping teachers manage their retirement plans effectively.
Taking the time to investigate and choose qualified advisors can result in long-term benefits for your financial future. Understanding the terms of your accounts, especially after significant life changes, is crucial in maintaining financial stability.
Frequently Asked Questions
How can I locate a life insurance policy from an old company?
Start by searching online for the names of the old companies. You can also contact the state insurance department where the company was based for additional help.
What can I do if the insurance company is no longer in business?
If the company is defunct, consult the guaranty association in your mother's state, which protects policyholders when an insurer fails.
What should I look for in a financial advisor?
Choose an advisor that is a fiduciary, meaning they are legally obligated to act in your best interests, ideally after an analysis of your current and future financial needs.
How does a spouse's death affect credit card accounts?
Many credit cards are individually held accounts, meaning a surviving spouse may need to apply for their own credit with potentially lower limits after the primary account holder passes away.
What resources are available for teachers regarding retirement plans?
Teachers can utilize organizations focused on financial planning and resources such as 403bwise, which rates retirement plans and educates about potential pitfalls.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Related Articles
- Growing Demand for Pea Protein: Market Insights
- Nyxoah Celebrates Nasdaq Closing Bell and U.S. Launch Plans
- Dividend Kings: Investing in Stability and Growth
- Luxspin Enhances Investments in Web3 and Digital Entertainment
- Providing Financial Support to Neighbors in Need
- Nvidia's AI Market Influence and Amazon's Strategic Warning
- Understanding Social Security Benefits for Retirement Planning
- Elon Musk Compares Government to DMV: Key Insights and Reactions
- Bitcoin and Crypto Market Trends: Insights Ahead
- ATV and SxS Market Expected to Reach $29.50 Billion
- RCI Banque Financial Overview for June 30, 2024
- Fnac Darty Share and Voting Rights Update
- Airbnb's Market Challenges and Growth Potential
- Management Trading Insights: Understanding Company Actions
- Growth of U.S. Wetland Management Market Explored
- FinTech Blockchain Market Growth and Trends Overview
- RCI Banque Releases Annual Financial Report for 2023
- RCI Banque Releases Consolidated Financial Statements
- Bouygues Monthly Update on Shares and Voting Rights
- Intel's Strategic Move to Enhance Financial Performance
- Bitcoin Market Trends and Updates
- Blackstone Expands European Warehouse Portfolio
- Global Ethylene Oxide and Glycol Market Outlook 2033
- Navigating Retirement Withdrawals: Maximizing Benefits
- Probiotic Yogurt Market Growth and Key Trends 2024
Recent Articles
- Luxspin Enhances Investments in Web3 and Digital Entertainment
- Exploring the Future of Open Source Business Models
- Growth of U.S. Wetland Management Market Explored
- Blackstone Expands European Warehouse Portfolio
- Global Ethylene Oxide and Glycol Market Outlook 2033
- Davidson Kempner Capital Discloses Position in International Paper
- Davidson Kempner Capital Management Discloses Position in Smith (DS) plc
- Hewlett Packard Pursues Legal Action for $4 Billion
- AB Amber Grid Launches New Lending Agreement with EPSO-G
- CrowdStrike Reports Strong Earnings Amidst Outage Setbacks
- Market Insights: UBS Picks for Future Growth
- Biopolymers Market Forecast to Double by 2031
- Achieving Early Retirement: How to Retire at 40 with $2 Million
- Blackstone Set to Acquire AirTrunk in Landmark Deal
- Exploring the Future of AI in Oncology Market Growth
- Market Insights: Potential Stalling of Equity Rally
- Germany's Manufacturing Sector Faces Continued Decline
- Japan's Manufacturing Sector Shows Signs of Recovery
- Global Flower Delivery Service Market to Reach $12.76 Billion
- Biotalys Gains Approval for EVOCA Trials in Greenhouses
- Aficamten Shows Promising Results for HCM at ESC 2024
- Top Credit Cards for Wedding Expenses in 2024
- Top Stocks to Consider from Billionaire Investors
- Top REITs for Long-Term Investment Opportunities
- Abaxx Technologies Acquires PrivacyCode, Inc.