I recently discovered something unexpected: my grandfather took out a life insurance policy on my child when she was born. Unfortunately, he passed away about ten years later and never mentioned it to me. Occasionally, I would receive mail from MassMutual, but I didn’t understand what it was about, so I ignored it, thinking it would just lapse due to non-payment.
Now, when I logged in, I found out there’s a $1,700 loan against the policy because it seems they were using the funds to pay the premium. What should I do now? If I cancel the policy, am I responsible for paying it back? As the insured’s mother, I had no idea he took this action without my consent!
It sounds like you’re in a confusing situation, and I understand how concerning that must be. Here are some steps you can take:
Contact MassMutual: Reach out to the company directly to discuss your situation. Explain that you were unaware of the policy and ask for clarification on the details, including the loan and what happens if you decide to cancel.
Review Policy Terms: Ask for a copy of the policy documents. This will help you understand the terms and any obligations that may be associated with the policy, including potential responsibilities regarding the loan.
Understand the Loan: If there’s an outstanding loan of $1700, ask about the implications of canceling the policy—specifically, whether you’ll need to repay the amount or if it will be deducted from the cash value of the policy.
Consider Your Options: Based on the information you receive, you can decide whether to keep the policy, cancel it, or maybe even convert it into something else. There could be benefits to maintaining the policy, depending on the cash value and other factors.
Legal Advice: If you feel uncertain or if there are any disputes regarding the policy or your responsibilities, consider seeking legal advice to understand your rights in this situation.
It’s understandable to feel overwhelmed, but taking these steps can help you gain clarity and make an informed decision moving forward.