Assistance Needed: Estimating Death Benefit for a Transamerica VUL Policy from the Late 90s
Hi everyone,
I’m looking for help in estimating the death benefit payout for my late sister’s Variable Universal Life (VUL) policy with Transamerica. Here’s a summary of the details I have:
- My sister, Debra (born in 1971), sadly passed away in December 2024.
- She had a successful 25-year career in biopharma in California, working for companies like Chiron and Novartis, until her resignation in 2022.
- Debra took out her VUL policy in the late 90s, shortly before marrying in 1999, while she was employed as a lab technician.
- At the time of purchase, she was in her late 20s, in good health, and had no significant financial obligations.
- Her investment approach was moderately risky.
- The face amount of the policy is $100,000.
- She paid a total of $43,000 in premiums.
- Transamerica has confirmed that it’s a VUL policy, but customer service could not provide specifics and referred me to CyberLife. However, when I contacted CyberLife, they indicated they cannot disclose payout details until the claims are processed.
- Claim forms were submitted on February 13, and when I followed up last week, I was told to call back in mid-March. Is this usual for a claim to take this long to process?
- Unfortunately, the original policy certificate is missing.
Beneficiaries:
– Mom (90, residing in the Philippines, wheelchair-bound)
– Dad (deceased in 2012)
– Brother Ciello (59, living in Vallejo, CA)
– Myself (youngest sibling, living in the Philippines and caring for our mom)
– Another sister, Rose, who is managing the paperwork, initially mentioned the payout might be around $50,000, but I’m uncertain about that figure.
– I’ve heard from some Reddit users that a VUL policy from the late 90s could have appreciated significantly, possibly reaching values between $200,000 to $800,000, assuming no loans or withdrawals were made.
Questions:
- Does the fact that Transamerica has assigned this to CyberLife imply a higher policy value?
- Was it common for a VUL policy from the late 90s to start with a face amount of only $50,000, or could it have been higher?
- For anyone familiar with Transamerica or VULs, what would be a reasonable estimate for how much this policy may have grown if it was well-managed?
- Since my dad was a beneficiary but passed away in 2012, how would his share be redistributed?
- Are there any potential complications regarding claims from the Philippines?
- Is it typical for claims to take this long to process? (The forms were received on February 13, and I was advised to follow up in mid-March.)
I’m currently overseas in the Philippines dealing with this situation, so any insights or advice would be immensely helpful. Thank you in advance!
I’m sorry to hear about your sister’s passing. Handling insurance claims can be daunting, especially when you’re dealing with the added complexities of being overseas. Here’s my take on your questions:
CyberLife Assignment: Transamerica’s decision to have CyberLife process the claim likely means they’re verifying the details of the policy to determine its current value. It doesn’t necessarily guarantee a higher value, but it does indicate they take the calculations seriously, which can be a good sign.
Policy Value at Purchase: VULs from that era often had minimum face amounts that could start around $50K, but many policies, especially for professionals like your sister, had higher initial values. Given her financial position and the need for insurance at that time, it is plausible that her face amount was at least $100K.
Estimate of Policy Growth: If the policy was well-managed, invested wisely in the right allocation based on her moderate risk appetite, it could potentially have grown significantly. Estimates of reaching anywhere from $200K to $800K are not out of the ordinary for VULs from that time frame, but this can vary greatly with the underlying investments’ performance.
Redistribution of Benefits: If your father was a beneficiary and passed away before Debra, typically, his share would be redistributed among the remaining beneficiaries. Check if the policy included a per stirpes clause, which would specify how his share is divided among his descendants (if applicable).
Claims from the Philippines: Usually, there should be no issues with claims from overseas as long as the necessary documentation is provided. It’s important to verify whether any additional paperwork is required for beneficiaries residing outside the U.S.
Processing Time for Claims: It’s not uncommon for life insurance claims to take some time, especially if additional verification is needed regarding policy value or beneficiaries. If you submitted the forms on February 13th, a few weeks of processing time isn’t unusual, but it’s reasonable to follow up regularly for updates.
While it can be frustrating waiting for answers, keep communication open with CyberLife, and don’t hesitate to ask them for clarity on any updates. Wishing you and your family the best during this time.