MYGA Beneficiary

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pfb3326
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Joined: Wed Dec 26, 2007 8:19 pm

MYGA Beneficiary

Post by pfb3326 »

If the owner of an MYGA should die before the policy matures, can the beneficiary delay taking the proceeds until the policy matures so that he can receive the full amount (the same amount the owner would have received had he lived)?
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retired@50
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Re: MYGA Beneficiary

Post by retired@50 »

pfb3326 wrote: Thu May 12, 2022 9:35 pm If the owner of an MYGA should die before the policy matures, can the beneficiary delay taking the proceeds until the policy matures so that he can receive the full amount (the same amount the owner would have received had he lived)?
You should probably post this question in the MYGA mega thread - here: viewtopic.php?t=334589

Regards,
This is one person's opinion. Nothing more.
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Stinky
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Re: MYGA Beneficiary

Post by Stinky »

pfb3326 wrote: Thu May 12, 2022 9:35 pm If the owner of an MYGA should die before the policy matures, can the beneficiary delay taking the proceeds until the policy matures so that he can receive the full amount (the same amount the owner would have received had he lived)?
Based on the product descriptions on the Blueprint Income website, it appears that there are a variety of practices. Some products allow what you’re asking, while others appear to immediately pay out the surrender value (rather than the account value) to the beneficiary.

I’d suggest that you check out the features of the contract you’re considering before purchase, and then check out the policy language once the contract is issued.

I agree with retired@50 that you might get more responses if you post in the other thread.
Former life insurance company financial officer who sincerely believes that ”It’s a GREAT day to be alive!”
Chardo
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Re: MYGA Beneficiary

Post by Chardo »

It depends on the contract and the carrier, but in general, only a spouse can continue the contract. A non spouse beneficiary cannot keep it to maturity.
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HueyLD
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Re: MYGA Beneficiary

Post by HueyLD »

pfb3326 wrote: Thu May 12, 2022 9:35 pm If the owner of an MYGA should die before the policy matures, can the beneficiary delay taking the proceeds until the policy matures so that he can receive the full amount (the same amount the owner would have received had he lived)?
The death benefit varies, depending on the insurance company.

The payout also depends on the timing of death, i.e. before annuity payments begin or after annuity payments begin.

And only the surviving spouse can take over the policy if (s)he is the sole beneficiary.

A non-spouse beneficiary may be able to choose a payment option if such a decision is made within a short window of owner’s death (e.g. 60 days) and such options vary depending on the insurance company. And payment options need to comply with the 10-year payout federal law/reg.

In short, the only way to be certain is to read the specific provisions in the contract.
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