Beneficiaries Of New York Yankees Pitcher Who Died In Plane Crash Could Lose Out On $1.5 Million Benefit
The beneficiaries of New York Yankees Pitcher Cory Lidle might not be able to collect on a $1.5 million benefit following his death due to the cause of his death. Under his baseball union’s benefit plan, his beneficiaries are entitled to an accidental death benefit of $1.05 million and a $450,000 life insurance benefit except for if his death occurs in “any incident related to travel in an aircraft ... while acting in any capacity other than as a passenger."
Lidle and his flight instructor were killed last week when the four-seat Cirrus SR20 they were riding in hit a 52-story building on Manhattan's Upper East Side. It is not clear who had been driving the plane at the time of the crash. He is survived by his 6-year-old son Christopher and his wife Melanie.
Life insurance policies require that you name a beneficiary.
When choosing a beneficiary, considering the following:
· Naming a beneficiary allows you to keep your estate outside the probate process.
· Make sure you carefully word your beneficiary designation to ensure that the right people are the actual designated beneficiary.
· Review your beneficiary designation should you get divorced.
· In the event that your beneficiary dies before you, you may want to name a secondary beneficiary.
According to Reliaquote.com
Individual Uses for Life Insurance:
· Funeral - Life insurance proceeds can ensure that there is enough money for proper funeral and burial expenses.
· Debt - Personal bills, credit card debt, student loans, and personal notes can be covered by life insurance in the event of an individual's death.
· Mortgage Protection - The proceeds of a life insurance policy can pay off the balance of a mortgage or provide an income stream to pay monthly mortgage or rent payments. · Income Replacement - In the event of an individual's death, life insurance proceeds can provide a supplemental income stream to ensure that the surviving family members are able to maintain the same standard of living.
· Education - Life insurance proceeds can ensure that the education costs of the insured's children are covered.
· Taxes - Federal estate and state inheritance taxes can be pre-funded using life insurance to preserve the value of an estate.
· Donations/Gifts - An individual can use a life insurance policy to fund a donation to a charity or leave a gift to a family member.
Business Uses For Life Insurance:
· Key-Person - A life insurance policy can be used to protect a business from the loss of income and profits caused by the death of a key employee.
· Business Continuation - Life insurance can be used to fund a buy/sell agreement or stock redemption plan to determine enable a partner or group of employees to buy the business interest of a deceased partner.
· Business Loans - Life insurance protection on a key employee or business owner can be used to pay off the debts of a business in the event of that individual's death.
· Employee Benefits - Life insurance protection for employees is commonly included in company employee benefits plans.
Accidental Death and Dismemberment:
A life insurance product that pays proceeds to your designated beneficiaries if you die or are disabled as a result of injuries caused by a covered accident (not due to an illness). A covered accident is one that is explicitly mentioned in the policy as a basis for payment.
The Law Offices of Scott Sagaria handles all areas relate to estate planning. If you live in the San Francisco Bay Area and would like to meet with an estate planning attorney, the Law Offices of Scott Sagaria can help you.
Lidle's Insurance Benefits In Question, SFGate.com, October 13, 2006
Baseball Player Killed After Plane Hits NY Building, inthenews.com.uk, October 12, 2006
Accidental Death And Dismemberment, Chaseinsurancegroup.com
Life Insurance Beneficiaries, Quickquote.com
Life Insurance 101, Reliaquote.com
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