William Penn Life, 1999 (34. évfolyam, 2-12. szám)
1999-07-01 / 7. szám
WPA Q« About 20 years ago, • when my son was a toddler, I bought a WPA life insurance policy for him. Now that he can afford his own insurance, I would like to cash in his policy and use the money for things I need. However, I was told that I can not cash surrender his policy, even though I am the one who paid all the premiums. Why can’t I have my money back? A# You can have your money • back-or, rather, the current cash value of your son’s policy—if your son says it’s okay. It’s a matter of ownership. The person who owns a life insurance policy-and all of its proceeds—is the person who that particular policy insures, unless ownership was assigned to another person at the time application for insurance was made. If you did not claim ownership of your son’s policy when you applied for it 20 years ago, then ownership was automatically assigned to your son. He was, and is, the only person who can cash surrender the policy, change the beneficiaries, etc. To gain control of your son’s policy, all you need to do is have your son assign ownership to you. We can send your son the necessary paperwork, which both you and he will have to sign. Such "reassignment” of ownership can be done at any time, even while the insured child is still a minor. But, all parents should think twice before reassigning ownership if their sole purpose for doing so is to cash surrender the policy. It could leave their child without life insurance protection. Crooks banking on Y2K fears^ any people are concerned about how the Year 2000 date change will affect such things as their bank accounts and utility services. These concerns have pricked the interest of scam artists, in much the same way blood in the water attracts sharks. The American Bankers Association has issued a consumer alert about a slew of scam artists using Y2K to scare people out of their money. The ABA describes one such scam and offers some advice on handling your bank accounts before the new year. Don’t Get Stung The scam starts with a phone call. According to the ABA, the caller "claims that your bank, in response to Y2K, is asking customers to transfer their money to a 'special account' which will ensure safety through the date change and conversion of all computer systems. The caller then asks for your account numbers and authorization to transfer your money to this 'special account.'" The truth is no bank has such a "special account." If you get such a call, or any call in which someone asks for your account information, hang up. Then call your bank and tell them what happened. "Never give your account information to anyone unless you initiated the call," says the ABA. "Don't reveal your account information unless you know them personally." Like Money in the Bank The ABA also has some advice for those preparing for the new millennium by withdrawing money from their accounts: think twice. Most experts agree having enough cash on hand to meet your needs for the first week of the new year should see you through any possible problems created by Y2K. Unfortunately, some people will panic and take large sums out of their accounts. Banks know this . . . and so do crooks. "Many crooks will be targeting people who are carrying or storing extra cash [in] December and January," the ABA warns. The money you leave in your account will still be protected. The Federal Deposit Insurance Corporation (FDIC) protects deposits up to $100,000 against loss due to a bank failure, including a Y2K problem. RUOK4Y2K? Are banks ready for Y2K? It's hard to say, since it is impossible to predetermine all of the targets Y2K could affect and how it will affect them. Nevertheless, the ABA claims "the banking industry is well-prepared for the challenge of Y2K, meeting assessment guidelines and preparation goals designed and mandated by federal regulatory agencies." [WFT] Money Links Wondering whether or not your bank is ready for Y2K? Call them and ask what preparations they have made and when they will be Y2K compliant. O For info on Y2K and banks call: Federal Deposit Insurance Corporation 1-800-934-3342 3 For the latest on Y2K. go on-line: www.y2knews.com 4 William Penn life, July i 999
