In need of life insurance dispute advice

In 1994, I took out a life insurance policy on my father. My agent put the policy in my fathers name in care of me. About a year later my brother and I agreed to split the cost of the premium so I added him as a beneficiary as well as myself. After 14 years of paying the premium and not recieving any help from my brother, I changed the beneficiary to me and my son in case something happened to me. I had to get my father's signature to do this because the policy was in his name. My brother found out about it and got my father to give him power of attorney over his affairs and he changed the beneficiary on the policy to himself. I have paid $383.00 a month for 15 years on a 100,000 dollar policy only to have it taken away just as my father is about to pass away. He has had lung cancer for a few years and has been given only a couple of weeks to live. I know my first mistake was not having this policy absolute assigned to me from day one but I never in my wildest dreams believed that my brother would ever try to pull this stunt. I've only seen my father about 20 times my entire life but he and my brother lived within 20 miles of each other and my father was afraid to change it back because he was in need of the help my brother was able to offer him. He was made to feel that if he changed it back, my brother would quit helping him. IS THERE ANY THING I CAN DO OR AM I SCREWED?

wow............

You said never in your wildest dreams would you have imagined this would happen......... after the first few months and brother never paid a penny---wouldn't that indicate that something wasn't right??

I would hire an attorney NOW but the fact that you 'went along with' the paying of the premiums for fifteen years with brothers name on it as well would imply you were giving your consent. Now, had brothers name never been on it or been on it for a short period of time and then removed (as in after it became obvious he wasn't going to pay after a month or two) then perhaps you would have a stronger case. I would hire an attorney now and see what can be done if anything while your father is still alive. Have you contacted your agent as well? Perhaps they can suggest something.

And for the record almost four hundred dollars a month for fifteen years?? That's HUGE. You DO realize you have paid almost seventy thousand of a hundred thousand dollar policy, don't you? Is there a reason why this amount is so outrageously high and why were you willing to pay it for all those years? I have a half million dollar policy on me for next to nothing--and I am in my forties. Why is this policy so outrageously high?? You would have done better to put the money into an interest bearing savings account each month. I know its a moot point now but hopefully other posters who read this can benefit.

I know I should have changed it earlier but I kept getting promises and he was my brother so i cut him some slack. Wrong move, for sure. As far as the agent is concerned, there is nothing that can be done now that my brother has been made power of attorney. And I have [HAD] a whole life policy on him. If I hadn't have borrowed money on it a couple of times it would be worth about 275,000 now. And you're right, I have paid in about 70,000 on it. I have talked to numerous agents and they all tell me the same thing, since my brother is power of attorney, the policy can't be changed unless he signs. And that is not going to happen. What I would really like to know is if there is any thing I can legally do to get my money back! Thanks!

Doe anyone else have any suggestions?

I can think of two legal theories which may secure you some compensation for the loss.

One of these is "unjust enrichment" or what is sometimes calle "quantum meruit", which is a legal, Latin term. The theory is that even though you apparently had no real contract with your father or your brother on payment of premiums, you furnished the payments, reasonably expected a return when the death benefit was payable, and relied upon that expectation by continuing to make the payments. I am not saying you necessarily win, even taking everything you have said as true and subject to certain proof, but it is a sound starting point for a case.

The other theory of recovery would be one of "undue influence". The argument here is that your father's will was overcome by improper influence by your brother.

In order to pursue these theories you will need to retain an attorney in the jurisdiction where this happened.

I wonder if the fact the poster has borrowed against the policy is relevant or significant..........

It does concern me that he paid the premiums and continued to do so for years upon end even though he says their agreement to share payment was never once acted upon. It seems like an acquiescence of an accepting of the status quo that is going to be difficult to overcome without, as you mentioned, excellent legal help and a lot of old fashioned luck.

I think the better way is to consult your local consultant as he suggests you according to laws and rules of your state. One thing i must say that your brother has not done right with you at all.