Our client was the surviving widow of the insured who suddenly died of a heart attack. At the time of his death, the insured had a group life insurance policy in the amount of $150,000 which was available to him through his employer. The policy had been in effect for less than two years and, therefore, the insurance company started a contestability investigation.
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.
Our clients called us for help after their claims had been denied by a major insurer in a beneficiary contest. Our life insurance attorneys were able to resolve this very complex matter involving murder, suicide, estate and life insurance disputes.
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.
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.
When a family member dies unexpectedly and you file a claim for life insurance benefits, you may be shocked to find out that the insurance coverage on your loved one had lapsed a long time ago. This may leave you frustrated and looking for answers.