Social Security Benefts for Minors

During lunch on this gorgeous fall day in an outdoor café, my friend, who was widowed last year, told me that her daughter was receiving social security until she finishes high school.  She was not aware of this benefit until another friend mentioned it to her.   Of all the professionals with whom she was in contact as a result of the death of her husband, it was a friend who told her she should apply to Social Security on behalf of her daughter who is still a minor.  Such important information.  So create a note and leave it with your important papers if you have children under age 18 or who are still in high school.  Someone would need to apply for these benefits—the government will not track your children down and offer them the benefits.

In some countries, organ donation is expected and one can “opt out”.  Here in the US, one has to “opt in”.  And to receive insurance benefits of any kind, one has to “opt in”.  The responsibility falls on the consumer in the US.

Make that responsibility more palatable by organizing your important papers, having THE conversation with your family about your desires for end of life care, and collecting information for your survivors that will make their journey less difficult.

As always, if you have questions or comments, please email me or leave them in the space below on the web version.

Life Insurance and Beneficiaries

Where has Naomi been?  On an around the world adventure?  No, it’s summer, family obligations, vacation, and a bit more laid back life than fall and winter.  September is here and I’m trying to get back on a schedule.  So here goes…

Several months ago I saw a "60 Minute" rebroadcast of a story about the responsibility of life insurance companies when it comes to paying out death benefits.  There is no legal responsibility on their part if they learn about the death of a policy holder to payout the benefit to the beneficiary unless the beneficiary contacts the company.  So even if the next door neighbor of the insurance agent dies and the agent knows this, the agent must wait until the beneficiary or a designated person contacts the company. 

I tried to find the episode; it seems to have been taken down- www.cbsnews.com/.../60-minutes-viewers-call-foul-on-insurance-companies/.  The gist was that companies earn interest on monies that are not paid out because no one has come forth with a claim.  SO IT IS EVEN MORE IMPORTANT FOR US, AS RESPONSIBLE ADULTS, TO TELL AT LEAST ONE PERSON WHERE OUR IMPORTANT PAPERS ARE KEPT.   I called my insurance company and I was told that beneficiaries or their designee have to contact the company to file a claim before the due date of the next premium payment.  For example, if I pay my annual premium in January and I die in February, my beneficiaries have until December to file a claim.  Why?  Because if I do not pay my next premium- and I can’t because I'm dead- the policy will lapse and the beneficiaries will get nothing if they have not filed a claim before the coverage lapses.  That’s important. Especially if I pay in January and I die in December, the timing is critical- the heirs have to act quickly.

My take away from this is I am going to write a note and put it with my papers telling my heirs to call the insurance company ASAP and get the ball rolling. 

This is not a discussion of the moral obligation of insurance companies, it is one more reason to get your act organized.  You don’t want your family missing out on all those premium payments you made with the intent to help them pay off your final expenses because no one knew you had a life insurance policy.

Comments?  Questions?  If you have life insurance, call you agent and get clarification.  Policies and companies vary.