Pension life insurance, mother's estate

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
Earl Lemongrab
Posts: 3390
Joined: Tue Jun 10, 2014 1:14 am

Pension life insurance, mother's estate

Post by Earl Lemongrab » Fri Jan 12, 2018 3:43 pm

My mother died several years ago, and I was the executor of the estate. That's all long completed. One of my siblings was going through her papers and found a pension benefits statement from when she was working (issued in 1987). It had something listed that he thinks might mean we're owed money.

She started working for Company A late in life, and retired from it. She had a small pension.
After that, Company A was acquired by Company B.
At some point, the company pension business was acquired by a third party.

The statement has the usual stuff with the vesting schedule, the estimated pension at normal retirement age, early retirement options, etc. The item that is causing the concern is a statement that says:

As an active employee participating in the Company A pension plan, you also have pension life insurance coverage of $XXXX.

He thinks that means that there might be an insurance policy out there that can be collected. I don' think it says that, but I'm not familiar with this product. I think that if there were some active policy with the pension (or annuity) company that they would have been required to send out such information when notified.

Anyone have any idea what this might be, or if there is anything there?
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

ICMoney
Posts: 141
Joined: Fri Oct 28, 2016 2:38 pm

Re: Pension life insurance, mother's estate

Post by ICMoney » Fri Jan 12, 2018 4:36 pm

Earl Lemongrab wrote:
Fri Jan 12, 2018 3:43 pm

As an active employee participating in the Company A pension plan, you also have pension life insurance coverage of $XXXX.
She was a retired employee of A, not an active employee of A, upon her death, correct? Retired is different from active, so she likely isn't owed anything additional based on that sentence alone. Some companies offer a postretirement life insurance benefit to death, so it could be worth a call to the benefits department if you think they may owe her something.

Best,
ICM

User avatar
Earl Lemongrab
Posts: 3390
Joined: Tue Jun 10, 2014 1:14 am

Re: Pension life insurance, mother's estate

Post by Earl Lemongrab » Fri Jan 12, 2018 5:44 pm

ICMoney wrote:
Fri Jan 12, 2018 4:36 pm
Earl Lemongrab wrote:
Fri Jan 12, 2018 3:43 pm

As an active employee participating in the Company A pension plan, you also have pension life insurance coverage of $XXXX.
She was a retired employee of A, not an active employee of A, upon her death, correct? Retired is different from active, so she likely isn't owed anything additional based on that sentence alone. Some companies offer a postretirement life insurance benefit to death, so it could be worth a call to the benefits department if you think they may owe her something.
Correct. I don't know who I would call. My initial take was that it was the sort of life insurance policy you often have a large employer.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Post Reply