Life Insurance Claim Recovered From Employer and Insurer

Our clients were designated beneficiaries on their mother’s life insurance policy. Their mother had a group life insurance policy through her employer. However, after their mother’s death the insurer refused to pay the claim stating that there was no coverage at the time of the death because she stopped working full-time and the coverage was not available to part-time employees.


$1 Million Paid After Claim Was Denied Due To Policy Lapse

Our clients, the widow and the three children of the insured, were devastated when their life insurance claim was denied after the sudden death of their father and husband. They called us in despair, because both the death and the denial were completely unexpected.

The insured had a $1 million policy that had been in effect for less than 2 years at the time the insured died. The insurance company denied the claim based on a lapse. The beneficiaries were informed that the insured failed to make a monthly premium payment and the policy had lapsed before he died. Therefore, the company claimed, there was no coverage at the time of his death. This was a complete shock for his surviving spouse, who never received any notices from the insurance company about the impending lapse.


Waiver of Premium Claim Denial Paid

Our client contacted our law firm after the life insurance claim on her deceased mother was denied by a major insurance company. The insured in this case had life insurance coverage and disability coverage through the same insurer. Since she was totally and permanently disabled, she qualified for a waiver of premium benefit – no life insurance premiums were needed in order to maintain the coverage.


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