Life Insurance Payout

[yogamom72]

My husband was not easy to insure.  He was sick for the last several years of his life.  I kept 2 small policies on him.  Both were formally group policies that were portable.  I kept each policy on him after I left the employers.

 

I have had one policy for 3 years (post employment) and one policy for 2 years (post employment).  We lapsed in paying on one of the policies back in April.  It was past the 30 day grace period before I realized this.  I sent a letter to the insurance company requesting a reinstatement along with the payments.  The next thing I know, the checks were cashed and the policy was reinstated.  There was no response to my letter nor were there any questions asked about my husband's health condition.

 

My question is this - do you think the insurance company will pay out this policy?  I am concerned about the reinstatement piece even though they never asked us any questions about his current health condition.

 

 

[donswife]

Hi

I am not quite sure but I would think if they cashed the checks it should pay out

I hope so and good luck

every little bit of money at this time helps

[Portside]

. . . do you think the insurance company will pay out this policy?

 

Hard to say - it depends on the terms and conditions of the insurance contract. Does it reference reinstatement anywhere in the paperwork you have?

 

Mike

[mbanyard]

If they cashed your cheques for that policy they have to pay it out. They took your money and would have a hard time explaining to a court why they wouldn't pay out in that case.

 

Good luck with this aspect of things. I just finished jumping through those hoops and ended up feeling "dirty" and "guilty" at the end of it, though this is exactly why we have insurance....to allow one to pay off the collective debt.

 

MB

[Portside]

 

If they cashed your cheques for that policy they have to pay it out. They took your money and would have a hard time explaining to a court why they wouldn't pay out in that case.

 

 

No, this isn't necessarily correct. That's why I asked about the T&Cs of the contract. It depends on the insurance contract. If the underwriters believes the contract was entered into (or reinstated) fraudulently, they can deny the payout no matter if the policy was paid up or not. This could occur if the insured was obligated to report any material change in health status, etc. when reinstating the contract.

 

Or, maybe there is no issue at all and you can rest easy. It just depends.

 

Hopefully, it all works out just fine.

 

Mike 

[yogamom72]

Mike -

 

I can't find the policy paperwork anywhere.  That's the thing - no one asked me any questions about anything.  They didn't even reply to my correspondence.  They just cashed the check and reinstated.

 

I guess I will just have to wait and see.  They sure are taking their time getting the claim paperwork to me.

[daysofelijah]

The life insurance co. took forever to pay out my husband's policy. They required many papers filled out by many doctors to prove that he actually died of brain cancer and that he didn't have it before he signed up for the policy two years beforehand. Thankfully in the end they finally did, but it took them almost a year to finally pay it out. They were not fun to work with, but I am very thankful he had the policy.

 

Hope it works out for you as well.