Quora Answer: Can the Executor Cash the Policies My Late Father Owned, & Add Them to the Estate?

The following is my answer to a Quora question: “My father died.  He was paying for the life insurance for my siblings, and he was the beneficiary.  My husband is the executor, and has this question: as executor can he cash the policies, and add to the estate?”

He may have been the beneficiary, but he may not have been the policy owner.  If he was the policy owner, then the executor may surrender the policies, and fold the proceeds into the estate. A better alternative would be to transfer ownership to the life insured, if that is not already a provision.

Most policies have, as part of the policy contract, a provision that the ownership of the policy revert to the life insured upon the death of the policy owner.  Some of them have the provision that the death of the policy owner after a certain waiting period would make the policy paid up.  In either case, it would be better to give the insured the option of continuing the coverage instead of discontinuing the plan.