Insurance after death?

Question:

my sister was killed in an auto wreck.she and her husband had a loan at a local bank.she had no life insurance but the insurance company of the drunk jerk that hit her has agreed to pay 25000 of policy.a lawyer has told her husband that the loans she and her husband had together will have to be paid before him or her kidds get anything.the loan is in both names and he is still paying on it.if it has to be paid the kidds get nothing.how does this work

I would suggest going to this site.
http://forum.freeadvice.com/index.php...

i have no ideal but i think the loan does not have to be paid in full because the husband is still alive to pay on the loan

First, my condolences

Second, your brother in law should get a lawyer to represent him. It seems the other party (the drunk driver) & his insurance company think that your sister's life was worth only $25,000. If the drunk had any insurance, the insurance should pay out more like $100,000 per person. If he did not have insurance, then he is personally liable for the damages including your sister's death.

Finally, your brother-in-law should go meet with an insurance agent. He now is solely responsible for his kids. He should find a way to provide for them regardless of what happens to him.

Responsible parents make sure that they have insurance and legal documents in place to provide for their children.

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Your brother in law needs a better lawyer. If your sister was killed by a drunk driver, then that insurance company and/or the drunk are responsible for the paying an amount equal to the income your sister would have earned over her natural life (or the value of cooking, cleaning. child care, etc, if she was a stay at home mom) plus medical costs, pain and suffering of her husband and children. That is definitely worth more than $25000.

In addition, depending on the terms of the loan would dictate whether they are due and payable in full because of your sister's death. If the loans were given based on the income of both husband and wife, then the loan may need to be renegotiated. But as long as payments on the loans are still being made, I don't think your brother in law should have problems keeping them as they are.

OK, there's a serious punctuation issue with your question, that makes it very hard to read and understand.

Insurance pays out different parts. There is "property damage" and there is "bodily injury". The insurance won't pay out more than the policy limits.

If the car loan was in HER name (which you indicate it was), then the property damage will be paid to HER ESTATE. As part of the estate settlement, all her DEBTS must be paid from her assets. If there is any money left over, then her HEIRS get it.

Likely, the bodily injury payment is ALSO being made, TO HER ESTATE. So that goes in to pay off her debts. No one can inherit anything from her estate, until her DEBTS are paid off. That can include funeral expenses.

Now, if she was employed and working, her husband should check with social security. There is a one time death benefit (a paltry $255 or some such), HOWEVER, the children would get social security survivor benefits, until the youngest is 18. And the spouse can also get social security survivor benefits, until the youngest is 18. So even without a real "life insurance" policy, there might be help.

Don't forget, HER auto policy might ALSO have some death benefit, or personal injury protection you could ALSO have hubby collect under.

Hiring a lawyer is probably a waste of money here . . .with a death, the other insurance company is probably just offering to pay the policy limits, and the lawyer can't do anything except slow down the settlement and take 30%.

Insurance after death?

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