If my father purchased a single premium whole life insurance policy that was not put in his full legal name, could that present a problem in the future?
Question Details: When my dad purchased the policy last year, they put it under his middle name which he goes by. He requested that they change it to his full legal name. They said that they couldn't do that but he could send in a copy of his driver's license and they would file it with his policy. Is this going to be a problem for us in the future? Also, my sister and I are listed as the primary beneficiaries with my husband listed as the only secondary. She is married and I have a son. How should the secondary beneficiaries be set up.
So this was an honest mistake but the insurer should have caught it. I would not only send in the license but an affidavit stating that he is also known by this middle name but that his legal first name is X and that this affidavit is sent for clarification purposes only. So long as the insurance company is on notice and there was no intent to defraud it should be ok. As for the beneficairy issue, it depends on what your Father wants and how the beneficairy designation is written. If Dad wants your nephew to inherit your sister's share then you need to make sure that will happen under the policy language. You need help from the insurer here. Make them help you. Good luck.