Seeking Help to Estimate Death Benefit for a Transamerica VUL Policy from the Late 90s
Hello everyone,
I’m looking for assistance in estimating the death benefit for my late sister’s Variable Universal Life (VUL) insurance policy with Transamerica. Here are the details I have:
- My sister, Debra (born in 1971), passed away in December 2024.
- She worked in biopharma for 25 years in California (at Chiron and later Novartis) before resigning in 2022.
- Debra purchased her VUL policy in the late 90s before marrying in 1999 while she was employed as a lab technician.
- At the time of purchase, she was in her late 20s, healthy, and had no significant financial responsibilities.
- She had a moderate risk tolerance for investments.
- Face amount of the policy: $100,000
- Total premiums paid: $43,000
- Transamerica has confirmed it’s a VUL, but customer service was unable to provide specific details and referred me to CyberLife. However, CyberLife mentioned they can’t share payout information until the claims process is complete.
- Claim forms were submitted on February 13th, and when I followed up last week, I was told to call back in mid-March. Is it common for claim processing to take this long?
- I am missing the original policy certificate.
The beneficiaries include:
– Mom (90 years old, living in the Philippines and wheelchair-bound)
– Dad (deceased in 2012)
– Brother Ciello (59 years old, residing in Vallejo, CA)
– Myself (the youngest, living in the Philippines and serving as a full-time caregiver for Mom)
– My other sister, Rose, who is managing the paperwork, initially suggested the payout might be around $50K, but I am uncertain about this figure.
Some users on Reddit indicated that VUL policies from the late 90s might have appreciated considerably, potentially ranging from $200K to $800K, assuming no loans or withdrawals were made.
I have a few questions:
- Does the referral of the claim to CyberLife indicate a higher policy value?
- Would a VUL policy from the late 90s typically start at just $50K, or was it likely higher?
- For those familiar with Transamerica or VUL policies, what is a reasonable estimate for how much this policy could have grown if it was well-managed?
- Since my dad was a beneficiary but passed away in 2012, how would his portion be reallocated?
- Are there potential challenges with claims coming from the Philippines?
- Is it usual for claims to take this much time to process? (Forms were submitted on Feb 13th, and I’ve been instructed to check back in mid-March.)
I’m currently overseas in the Philippines, so any insights would be immensely helpful! Thank you in advance for your assistance.
I’m really sorry to hear about your sister’s passing. It sounds like you’ve got a lot on your plate, especially being overseas and managing the details of her policy. Here are my thoughts on your questions:
CyberLife Assignment: The involvement of CyberLife generally means that they handle the administration of the policy. It doesn’t necessarily indicate a higher value, but it may suggest that they have the access to more detailed policy information and the ability to assess any potential growth or changes.
Initial Face Amount: VUL policies often had varying initial face amounts based on the policyholder’s preferences and financial goals. It’s quite possible that the initial amount was higher than $50K given your sister’s risk appetite and career at the time. VULs were often sold with a range of face amounts starting at $100K or more, especially in the late 90s.
Potential Growth Value: If the policy was managed well, the cash value component of a VUL from that era could have indeed grown significantly. While estimates vary widely, it’s reasonable to guess that growth could fall within the range you mentioned ($200K – $800K). The actual amount will depend on factors like how the premiums were invested, any additional contributions, and fluctuations in market performance.
Redistribution of Beneficiary Share: Usually, if a beneficiary (like your dad) passes away before the insured, their share would typically be redistributed among the remaining beneficiaries. If there are no stipulations in the policy stating otherwise, his share would likely be split equally among the surviving beneficiaries—this would mean you, your brother Ciello, and your sister Rose would divide his portion.
Claims from the Philippines: Generally, there shouldn’t be any issues with claims being processed from the Philippines. The insurance company might need to verify the identity of beneficiaries and may have specific procedures in place for international claims, but it shouldn’t be an insurmountable barrier.
Claim Processing Time: The timeline you’ve described seems somewhat typical, especially given the complexities of VUL policies and the need for thorough processing. Insurance claims can take several weeks to a few months, depending on the company and the specifics of the claim. They may also be experiencing delays due to volume or other factors. Calling back mid-March for an update seems reasonable.
In the meantime, it might be helpful to document every interaction with the insurance company and keep track of any reference numbers or details they provide. Best of luck, and I hope you receive clarity soon!