Michael Jackson's Life Insurance to Pay Out $3 Million

August 8, 2009 By:
Michael Jackson's Life Insurance to Pay Out $3 Million

Michael Jackson's life insurance company has agreed to pay his estate $3 million dollars.

John Branca and John McClain, who are the temporary administrators of Jackson's will, are said to have cashed in the contract, winning $3 million for the Michael's estate.

Initial reports indicated Jackson's policy was worth up to $20 million, but according to TMZ, Branca and McClain were in a rush to finalize the deal, so they settled for just $3 million.

They were in a rush to settle because they were reportedly worried that the insurance company would refuse to pay anything if an autopsy report determined drugs were the cause of death.

And it sounds like they settled just in time. On Friday new toxicology reports surfaced and according to multiple law enforcement sources, Propofol wasn’t the only drug found in Michael Jackson’s system at the time of his death.

The report indicted that alprazolam, which is better known as Xanax, was also found. This drug is commonly used to treat patients with anxiety.

But it’s still believed that Propofol, according to a source, the "front and center in terms of why [Jackson] died."

In related news, if it is eventually concluded that drugs were in fact the cause of Michael’s death, it may mean bad news for AEG as drugs were not covered in the life insurance policy.

They took out a $17.5 million life insurance policy with Lloyd’s of London on Michael Jackson for his London comeback. His estate would only get a payout if his death was deemed "accidental." So it sounds like Branca and McClain settled his personal life insurance policy just in the nick of time!