Interview on “Rewards from the Grave”
PYMNTS.com: Tell us a little bit about why you felt it was important to explore this topic?
GERRY BEYER: The majority of airlines and large retail businesses promote loyalty by providing their customers an opportunity to accumulate rewards or points. Unfortunately, most of these rewards recipients do not consider what happens to their rewards when they’re no longer alive to use them.
PYMNTS.com: What popular frequent flyer and other loyalty programs in particular did you examine in the report, and what were their respective rules?
BEYER:
American Airlines AAdvantage Program
Upon death, a participating AAdvantage member may be allowed to transfer his or her accumulated mileage credit to persons named specifically in a court-approved will or estate plan. American Airlines reserves sole discretion for allowing such a transfer to occur.
United Airways Mileage Plus Program
United Airlines’ Mileage Plus Program, by specific language in the program’s terms and conditions, seems to prohibit any type of transfer of accumulated mileage. However, Airwatchdog.com reports that a deceased member’s miles may be transferred to a named beneficiary for a $75.00 fee if the executor of the estate contacts UA’s customer service and requests a form for the transfer. You will also need a death certificate and proof of the identity of the intended beneficiary.
Continental OnePass
Upon death, a OnePass member’s “accumulated mileage and points may be transferred to the surviving spouse or a beneficiary named in a will.”
Southwest Airlines Rapid Rewards
No type of mileage transfer is allowed. However, accumulated miles can be used so long as the member account is active—regardless of whether the member is actually alive.
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PYMNTS.com: What were some of the key findings? Any big surprises?
BEYER: The most surprising trend I noticed was that, despite not advertising what happens upon death, most of the major airlines have programs in place to deal with these kinds of transfers—you just have to know what to ask and whom to ask.
PYMNTS.com: What are the incentives for loyalty programs to allow transfer of accrued points and miles after death? On the flip side, are there any significant downsides?
BEYER: The biggest incentive is continued customer loyalty. By allowing these types of transfers, companies would either (1) gain new customers to make up for those they have lost or (2) cement customer loyalty to their programs by showing customers just how much they care about their continued business. The biggest downside is that companies offering loyalty program benefits would need actually to deliver more of those benefits as the right to those benefits would no longer be lost upon a person’s death.
PYMNTS.com: What advice would you offer cardmembers to ensure their accrued points and miles do not disappear after death?
BEYER:
Obtain Information About Benefits Programs
Preparing for the transfer of loyalty benefits hinges on the person’s specific circumstances and the program involved. The following need to be determined:
1. To what loyalty programs does the person belong?
2. Does the person have (or is likely to have) a sufficient accumulation of benefits to merit planning?
3. What is each program’s formal policy for the transfer of benefits when a member dies?
4. Does the program have an informal method for the transfer of benefits upon a member’s death?
5. Does the program have a policy for the transfer or gifting of miles or points during a member’s life which may be a better option than delaying a possible transfer until the person’s death?
6. Is the intended beneficiary a current member of the same program as the person?
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See Card and Airline Rewards: Till Death Do Us Part (Or Not), PYMTS, 2011.