Assistance Needed: Estimating Death Benefit for Late 90s Transamerica VUL Policy
Hello everyone,
I’m hoping to get some assistance in estimating the death benefit for my late sister’s Variable Universal Life (VUL) policy with Transamerica. Here’s what I’ve gathered so far:
- My sister, Debra (born 1971), passed away in December 2024.
- She had a 25-year career in the biopharma sector in California (at Chiron, later Novartis) before resigning in 2022.
- Debra took out her VUL policy in the late 90s, just before her marriage in 1999, while she was working as a lab technician.
- At the time of the policy purchase, she was in her late 20s, healthy, and had no significant financial responsibilities.
- She had a moderate risk tolerance for investments.
- Face amount: $100,000
- Total premiums paid: $43,000
Transamerica confirmed that it’s a VUL policy, but their customer service couldn’t provide specific details and redirected me to CyberLife. Unfortunately, CyberLife indicated they can’t disclose payout information until the claim is processed.
The claim forms were submitted on February 13th, and when I called last week for an update, they told me to check back in mid-March. Is this typical for claim processing to take this long?
I also want to note that the original policy certificate is missing. There are four original beneficiaries:
– Mom (90, residing in the Philippines, wheelchair-bound)
– Dad (deceased in 2012)
– Brother, Ciello (59, living in Vallejo, CA)
– Myself (youngest, living in the Philippines and serving as a full-time caregiver for Mom)
– My other sister, Rose, who has been managing the paperwork, initially mentioned that the payout might be around $50K, but I have some doubts.
– I’ve seen comments on Reddit suggesting that a VUL from the late 90s could have grown significantly, potentially reaching anywhere from $200K to $800K, assuming there were no loans or withdrawals taken against it.
Here are my questions:
- Does CyberLife’s involvement indicate a potentially higher policy value?
- Was it common for a VUL policy from that period to start at only $50K, or was it likely higher?
- For those familiar with Transamerica or VUL policies, what would be a reasonable estimate for how much this policy could have appreciated if it was managed well?
- If my dad, who passed in 2012, was a beneficiary, how would his share be redistributed?
- Are there any potential issues with processing claims from the Philippines?
- Is a claim processing time of this length typical? (Forms were submitted on February 13th, and they suggested I call back in mid-March.)
I’m currently overseas in the Philippines, so any insights you can provide would be greatly appreciated. Thank you in advance for your help!
I’m sorry to hear about your sister’s passing. Handling life insurance claims can be overwhelming, especially from a distance. Here are some insights and answers to your questions:
Transamerica and CyberLife: The assignment to CyberLife for claims processing is common and does not necessarily indicate a higher policy value. CyberLife is part of Transamerica’s operations, so they may be handling the claims internally. Their involvement is standard procedure when dealing with claims, and it doesn’t imply anything about the policy’s value specifically.
Starting Face Amount: VUL policies purchased in the late 90s often had face amounts starting from around $50,000, but many were commonly issued at higher amounts, typically between $100,000 to $250,000, especially if the policyholder had a reasonable income and was in good health. Given that your sister had a face amount of $100,000, this seems like a plausible starting point, but it’s always good to consider the potential for a higher initial amount depending on her financial situation and needs at the time.
Estimated Growth of the Policy: A well-managed VUL policy from the late 90s, especially with a moderate investment strategy, could have experienced significant growth over the years, assuming no loans or withdrawals were taken out. While estimates vary widely, many VUL policies have seen growth that might put the value in a range of $200,000 to $800,000, depending on the investments and market conditions. Gathering more information about the investment performance can be helpful to refine this estimate.
Redistribution of Beneficiary Share: If your dad was a beneficiary and he passed away in 2012, his share would typically pass to his estate unless otherwise specified in the policy or will. In many cases, it would then be divided among the remaining beneficiaries (your mother and siblings). However, it’s essential to verify this with the insurance company or a legal expert, as state laws and policy specifics can vary.
Claims from the Philippines: There shouldn’t be significant issues with claims from the Philippines as long as you provide all the required documentation. Make sure your mother’s status as a beneficiary is clearly communicated and that any paperwork is accurately completed. However, do check if there are any specific requirements for processing claims for overseas beneficiaries.
Claim Processing Time: Claims processing times can vary widely, and a timeframe of several weeks to a couple of months is not uncommon, especially if additional documentation or verification is needed. The insurer often has a set period for claim processing by law, but delays can happen. If the situation feels prolonged, following up regularly can be helpful.
I recommend keeping accurate records of all communications and documents related to the claim, and if the wait becomes too long, don’t hesitate to escalate your concerns with the insurance company. Best of luck in navigating this process, and I hope you receive a favorable outcome soon!