Claim Process After Death

[Newby]

LH, Forethought for 2. 5 Star claims to send half in 24 hours but they don't do it. Or th didn't do it on the claims that I had with them.

Doesn't matter the company if the funeral home wants the money fast. Any company can be assigned as long as it's non contestable.

Another thing you have to be aware of, and this is by state, the company has to check with the state child support dept to make sure there are not any liens for back payments. If that's the law in the state then they have first for the monies over the cost of the funeral.

I don't think that applies if there is a living beneficiary named on the policy. That would only be the case if the policy runs through the estate.

Believe it or not, in KY the funeral home gets paid even before the IRS if the policy does run through the estate. Strong Funeral Director lobby in KY.

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Great info. One more question, if assigned by a funeral home does the check go to beneficiary to pay expenses or to the funeral home?

If the policy is assigned to the funeral home it pays the funeral home directly and any balance MUST go to the estate (not the beneficiary). If they were on Medicaid, everything that runs through the estate will go to Medicaid.

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Thanks for the response, that was helpful. Would you be able to name an FE company or two that process as quickly as 24 to 48 hours after funeral home notification?

The fastest company of all is Homesteaders. They place a checkbook in each funeral home. As soon as the funeral home receives a new case (deceased) they just write themselves a check for the face amount up to the amount of the funeral bill.

It doesn't get any quicker than that.

 

[VolAgent]

If the policy is assigned to the funeral home it pays the funeral home directly and any balance MUST go to the estate (not the beneficiary). If they were on Medicaid, everything that runs through the estate will go to Medicaid.

You can do just a partial assignment, correct?

 

[jdeasy]

I don't think that applies if there is a living beneficiary named on the policy. That would only be the case if the policy runs through the estate.

Believe it or not, in KY the funeral home gets paid even before the IRS if the policy does run through the estate. Strong Funeral Director lobby in KY.

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If the policy is assigned to the funeral home it pays the funeral home directly and any balance MUST go to the estate (not the beneficiary). If they were on Medicaid, everything that runs through the estate will go to Medicaid.

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The fastest company of all is Homesteaders. They place a checkbook in each funeral home. As soon as the funeral home receives a new case (deceased) they just write themselves a check for the face amount up to the amount of the funeral bill.

It doesn't get any quicker than that.

I just had one where the beneficiary is the one that had a lien for back due child support. The company would not release the funds on a non contestable case until the state sent them amount of the lien. The deceased did not hve a lien.

I worded that wrong before.

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Question JD have you tested this on a claim that was out of contestability?

What do you mean, have I tested it? Have i seen funeral homes do assignments? Yes, many times.

Just saw one where the policy was $15,000. The funeral was a little over $7000. The funeral home did an assignment for the whole $15,000 and then turned around and wrote a check to the beneficiary for the difference.

I don't know if they passed the fee onto the beneficiary or not

 

[Newby]

You can do just a partial assignment, correct?

Not if they are on Medicaid.

 

[bboman23]

Sorry about that jd. I meant have you tried 5 Star's emergency benefit on a claim outside of contestability?

 

[jdeasy]

Sorry about that jd. I meant have you tried 5 Star's emergency benefit on a claim outside of contestability?

I've had 2 5 Star clients die that were out of contestability. One by law and the other because he had the policy more than 2 years. In neither case was half the face amount sent to the beneficiary within 24 hours of notice of death as 5 Star claims they will do.

I would guess that the claims dept at 5 Star doesn't even know that is listed on the brochure.

 

[Norwayguy]

I've had 2 5 Star clients die that were out of contestability. One by law and the other because he had the policy more than 2 years. In neither case was half the face amount sent to the beneficiary within 24 hours of notice of death as 5 Star claims they will do.

I would guess that the claims dept at 5 Star doesn't even know that is listed on the brochure.

But JD they are getting to that you can be sure....The question is do you think the brochure will be changed to remove that

 

[jdeasy]

But JD they are getting to that you can be sure....The question is do you think the brochure will be changed to remove that

I'm sure they are working on it. Best to call them up on Friday to ask about it.