I had no idea…
My grandfather took out a whole life policy for my child when she was born, then passed away about ten years later without ever mentioning it to me. Occasionally, I received mail from MassMutual, but I didn’t understand what it was about, so I foolishly ignored it, thinking it would just be canceled due to non-payment.
I finally logged in to check the account and discovered I have a loan of $1,700 on it because, I guess, it was covering the premium! What should I do now? If I cancel it, will I be responsible for repaying that amount? I’m the mother of the insured, but I had no idea he took this action without my consent!
It sounds like you’re in a challenging situation, and it’s understandable to feel overwhelmed. Here are some steps you can take:
Review the Policy: Carefully read through any documentation you have from MassMutual regarding the policy. This will help clarify the terms of the policy, including any obligations you may have as the owner or beneficiary.
Contact MassMutual: Reach out to the customer service department of MassMutual as soon as possible. Explain your situation, including that you were not aware of the policy until now and that you have concerns about the outstanding loan and premium payments. They should be able to provide you with information on the policy status and your options moving forward.
Understand the Loan: Ask them to explain the loan on the policy. In many cases, if the policy has a cash value and it has taken a loan against it, you may have options regarding paying it back or managing it.
Consider Your Options: Depending on what MassMutual tells you, you may have several options:
Discuss any consent requirements or legal obligations concerning your grandfather’s actions, as this might affect your responsibilities.
Seek Professional Advice: If you feel overwhelmed, it might be worth consulting with a financial advisor or attorney who can provide guidance on managing the policy and navigating your obligations.
Learn for the Future: Going forward, consider setting up an account with any insurance companies or banks you have business with. This way, you’ll be able to keep track of any policies and accounts associated with you or your child.
While it can be frustrating to find yourself in this situation, taking these steps will help you understand your responsibilities and options moving forward. Good luck!