Why can't insurance companies give out beneficiary information?

Question

My father passed away 3 weeks ago. He had 2 life insurance policies. We know the amounts of the policies. We know that my stepmom, my brother and I are beneficiaries, but we don't know how much we are all getting. His large policy is waiting on toxicology and the final death certificate to determine eligibility. His small policy is supposed to be sending out info to beneficiaries, but I don't know when. I've called the companies, but they won't tell me anything, why is that?

Also, he did not have a will, and the policies we have don't have beneficiary info in them.

Answer 1

As answered, confidentiality.

Also, the beneficiary is set by contract, so no will is needed and is irrelevant.

There are different beneficiary arrangements, however.  You mention that three of you are beneficiaries.  Equal, to be determined.  There are PRIMARY and CONTINGENT beneficiaries.  The primary one are the first to receive proceeds.  Many of the insurance contracts will specify in what share, if more than one is involved.  All proceeds are distributed to the Primary first, hence its name.  Only if the primary bene pre-deceases the insured, do the Contingent benes come into play.  Again, the share is equally to all benes listed, unless specific shares are stated in the contract.

Answer 2

I'm sorry about your father- the policy OWNER needs to call in and get that info, the life companies will only talk to the policy owner because that is the person who is the customer to them.

Answer 3

This has to do with client confidentiality.   Insurance companies can get sued by the actual benefiary for disclosing this information.  Different companies have different privacy policies and depending on where you live, it might be a state/provincial or even nationally imposed privacy policy.

The reason they may not give out the info is also becuase they may need to investigate the death.  Most insurance policies have exclusions like the policy won't pay out if you were under the influence of drugs or alchohol and that played a factor.  This may be why...they don't want to release any information until they know it is a legitimate claim.

Answer 4

That information is confidential.  If your father didn't tell you, you will have to wait.  Insurance proceeds are paid to the named beneficiaries - a will has nothing to do with it.