Estimating Death Benefit for a Transamerica VUL Policy from the Late ’90s
Hello everyone,
I’m seeking help in estimating the potential death benefit from my late sister’s Variable Universal Life (VUL) policy with Transamerica. Here are the key details:
- My sister, Debra (born 1971), passed away in December 2024.
- She had a 25-year career in the biopharma sector in California, working for companies like Chiron and later Novartis, but she resigned in 2022.
- Debra purchased her VUL policy in the late ’90s before marrying in 1999, while she was working as a lab technician.
- At the time of purchase, she was in her late 20s, in good health, and had no significant financial responsibilities.
- Her investment risk tolerance was moderate.
- The face amount of the policy is $100,000.
- Total premiums paid amounted to $43,000.
- Transamerica has confirmed it’s a VUL policy, but their customer service couldn’t provide specific details and referred me to CyberLife. CyberLife mentioned they can’t disclose payout information until claims are processed.
- Claim forms were submitted on February 13th. When I called for an update last week, they advised me to check back in mid-March. Is it typical for claim processing to take this long?
- Unfortunately, the original policy certificate is missing.
- There are four original beneficiaries:
- Mom (90 years old, living in the Philippines, wheelchair-bound)
- Dad (deceased in 2012)
- Brother Ciello (59, residing in Vallejo, CA)
- Myself (the youngest, currently in the Philippines, serving as a full-time caregiver for Mom)
- My other sister, Rose, who is handling the paperwork, initially indicated that the payout might only be $50K, but I’m uncertain about that figure.
- Some users on Reddit have suggested that a VUL policy from the late ’90s could have appreciated significantly, potentially reaching values between $200K and $800K, assuming no loans or withdrawals.
I have a few questions:
- Does the fact that Transamerica assigned this to CyberLife imply a higher policy value?
- Was it common for a VUL policy from that era to start at only $50K, or could it have been higher?
- For those experienced with Transamerica or VUL policies, what might a well-managed policy from that time have grown to?
- How would my dad’s share be redistributed now that he has passed?
- Are there any complications with claims originating from the Philippines?
- Is it normal for a claim to take this long to process? (I submitted forms on February 13th and was advised to call back in mid-March.)
I’m currently abroad in the Philippines managing this situation, so any insights you can share would be immensely helpful. Thank you in advance!
I’m sorry to hear about your sister’s passing. Navigating insurance claims can be quite challenging, especially from abroad. Here are some insights regarding your queries:
Transamerica and CyberLife: The fact that Transamerica directed you to CyberLife suggests they handle the administrative side of the policy, but it doesn’t necessarily indicate a higher policy value. The value of the policy will depend on several factors, including the underlying investments.
Initial Face Amount: A VUL policy can have various face amounts, and while $50,000 may have been common for some policies in the late 90s, many people opted for higher amounts like $100,000 or more, especially if they were in reasonably good health and were looking for more robust coverage. Given that your sister had a moderate risk appetite, it’s possible she chose a more balanced face amount.
Estimated Policy Value: VULs are known for their investment component, which can potentially enhance the death benefit. If the policy was well-managed and not subjected to major loans or withdrawals, it could have appreciated significantly over the years, potentially falling within the estimated range of $200,000 to $800,000 mentioned by Reddit users. However, the actual figures would depend heavily on the investment performance of the sub-accounts chosen.
Redistribution of Benefits: If your father was a beneficiary and has passed away, typically his share would be redistributed among the remaining beneficiaries unless the policy specifies otherwise. This means that his portion would be divided among you, your mother, and Ciello, likely equally unless stated differently in the policy.
Claims from the Philippines: There should not be any issues with processing claims due to your mother being in the Philippines, but it may take longer due to international factors. Insurance companies are generally required to honor claims regardless of the geographic location of the beneficiaries.
Claim Processing Time: It’s not uncommon for life insurance claims to take several weeks to process, especially if there are complexities involved or if they require additional information. Since you submitted the claim on February 13th, it’s reasonable for them to take time to verify everything and process the payout. While it may feel lengthy, calling back in mid-March for an update seems completely appropriate.
It’s always a good idea to keep a record of all communications with the insurance companies and any relevant paperwork you have, even copies, to help streamline your communication. I hope this helps, and I wish you and your family all the best as you navigate this difficult time.