Request for Assistance in Estimating Death Benefit for a Transamerica VUL Policy from the Late 90s
Hello everyone,
I’m seeking help to estimate the death benefit payout for my late sister’s Variable Universal Life (VUL) policy with Transamerica. Here are the details I have:
- My sister, Debra (born in 1971), passed away in December 2024.
- She had a 25-year career in the biopharma industry in California, working at Chiron and later Novartis, before resigning in 2022.
- Debra purchased her VUL policy in the late 90s, just before marrying in 1999 while employed as a lab technician.
- At the time of purchase, she was in her late 20s, healthy, and had no significant financial commitments.
- She had a moderate risk tolerance regarding investments.
- Face amount: $100,000
- Total premiums paid: $43,000
- Transamerica confirmed the policy is a VUL, but customer service couldn’t provide much information and directed me to CyberLife. They mentioned that payout details can’t be shared until claims are processed.
- The claim forms were submitted on February 13th, and after following up last week, I was advised to call back in mid-March. Is it common for claims to take this long?
- Unfortunately, the original policy certificate is missing.
Beneficiaries:
– Mother (90, living in the Philippines, wheelchair-bound)
– Father (deceased since 2012)
– Brother, Ciello (59, residing in Vallejo, CA)
– Myself (youngest sibling, living in the Philippines as a full-time caregiver for my mom)
– My sister, Rose, who is managing the paperwork, initially estimated the payout might only be $50,000, but I’m uncertain about this.
I’ve seen some discussions on Reddit suggesting that a VUL policy from the late 90s could have appreciated significantly, possibly reaching between $200,000 and $800,000, assuming no loans or withdrawals were taken.
My Questions:
- Does the fact that Transamerica referred this to CyberLife indicate a potential for a higher policy value?
- Was it typical for VUL policies from the late 90s to start at just $50,000, or is it likely that the initial face amount was higher?
- For those knowledgeable about Transamerica or VULs, what might be a reasonable estimate for the potential growth of this policy if it was well-managed?
- Given that my father was a beneficiary but passed away in 2012, how would his share be redistributed among the remaining beneficiaries?
- Are there any concerns I should be aware of regarding claims processing from the Philippines?
- Is it standard for claims to take this long to process? (Claim forms were received on February 13th, and I’m asked to check back in mid-March.)
I’m currently overseas in the Philippines managing this situation, so any insights would be greatly appreciated. Thank you in advance for your help!
Hi there,
I’m sorry to hear about your sister’s passing. Navigating the claims process for a VUL policy can be challenging, especially from overseas. I’ll do my best to address your questions:
Transamerica and CyberLife Assignment: The assignment to CyberLife primarily indicates that they are the policy administrator. It doesn’t necessarily imply a higher policy value. CyberLife is likely just responsible for processing the claim and managing the policy’s administration.
Face Amount of the Policy: Many VUL policies in the late 90s had face amounts starting around $100,000, as you mentioned. However, it’s not uncommon for policies to be issued at higher amounts, especially if the policyholder had a decent income and no major financial obligations. The fact that your sister had a moderate risk appetite could mean the investment component of her policy had the potential to grow significantly, depending on how it was managed.
Growth Estimate for the Policy: Variable Universal Life policies can vary widely in growth based on investment performance. If well-managed and assuming a consistent, moderate investment performance, it might be reasonable to expect growth in the range you mentioned ($200K – $800K). However, without knowing details about the specific investments and their performance, any estimate will be speculative.
Redistribution of Beneficiary Shares: Since your dad was a beneficiary and has since passed, his share would typically be redistributed among the remaining beneficiaries unless otherwise specified in the policy or state law. Since you all are siblings, it’s common for his share to be divided equally among you and your sister Rose.
Claims from the Philippines: There shouldn’t be any significant issues with processing the claims internationally, as long as you provide the necessary documentation. It’s best to ensure that you have all required documents ready (such as proof of death, ID, etc.) to facilitate the process. However, communication might take a bit longer, so patience will be key.
Claim Processing Time: It’s not uncommon for claims to take several weeks to process, especially if additional documentation is needed or if they need to clarify certain details with the beneficiaries. Since they received the forms on February 13 and mentioned mid-March for a follow-up, it sounds like they are within a reasonable timeframe, but it can feel long when you’re waiting for news.
Navigating this from abroad can be difficult, but staying persistent with follow-ups and keeping records of all communications will help. Best of luck, and I hope you receive the outcomes you’re hoping for.