Many group life insurance policies offer a waiver of premium benefit. A waiver of premium benefit provides life insurance coverage in the event of total disability and does not require premium payments.
It means that a disabled person who applied for a waiver of premium benefit may be covered by the same amount of life insurance they had before disability free of charge. In order to take advantage of this benefit, an insured must apply or send in a request to the insurance company providing coverage.
Disputes about life insurance proceeds among family members are not only emotionally difficult, but they can also negatively affect financial affairs of those who relied on the proceeds of a life insurance policy after a loved one’s untimely death.
Law surrounding estate planning, family, divorce, child support, trusts and wills may all come into a play after a person’s death. Dealing with financial affairs after a family member’s death may become a real problem because of the complexity of laws and the amount of documents involved.
Every life insurance policy has a provision outlining a procedure for filing a claim.
It usually describes how soon after the insured’s death a claim for benefits should be submitted. It specifies such details as the deadline for submitting a new life insurance claim, notice of claim, and proof of loss. It also describes what claim may be rejected if filed improperly.
One of the reasons a life insurance claim may be denied is because a claimant failed to submit Notice of Claim and Proof of Loss in a timely manner.
Residents of New York who purchased life insurance from an insurance company that goes out of business will still be covered under the new law. In November 2014, New York Governor Andrew Cuomo signed a bill that removed a cap on a New York fund that pays benefits to New Yorkers who bought life insurance policies with companies that became insolvent.
Departments of Insurance of several states announced a $1.2 million settlement agreement with Symetra Life Insurance and Symetra National Life Insurance Company in connection with the insurer’s use of the Social Security Administration’s Death Master File.
The settlement was a result of a multi state investigation led by Illinois, Florida, New Hampshire, North Dakota, Pennsylvania, and California.
State community property laws offer certain protections to spouses in case of marriage dissolutions and often require a division of marital assets between the divorcing spouses and in the event of a spouse’s death.
In case of a spouse’s death, community property state laws may be involved in a life insurance dispute. Such laws are complex, especially if they are viewed in conjunction with federal laws controlling such life insurance claims as FEGLI claims.
The federal laws controlling FEGLI claims usually preempt state laws, including those of community property states. Courts across the country have ruled on the issue of a FEGLI claim dispute in community property states.
Thus, the United States District Court of California ruled in MetLife v. Armstrong-Lofton that a state law claim to the benefits of a FEGLI policy is preempted by federal laws.