9 Ways Life Insurance Will Not Pay Out
Last updated: March 28th, 2023
Reviewed by
Grant Desselle
Licensed Insurance Agent
Table of Contents
1. Suicide
A common circumstance in which a life insurance policy will not pay out is in the case of suicide. Depending on what state you live in, there could be a suicide clause in your policy. If there is such a clause, and if you were to commit suicide within the specified time frame, your beneficiary would only get the premiums back, not the death benefit.
This suicide clause is an incontestability clause, a window of time during which the insurance company can investigate and deny claims. The period is usually one to two years in most states, and it begins as soon as the insurance policy goes into effect.
The clause protects life insurance companies from people who would take out a large policy and then commit suicide for the “betterment” of their family’s financial situation. The thought of doing something like that might seem bizarre to most people, but before the incontestability “suicide clause” went into effect it occurred more often than you might think.
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2. Withholding Information On The Application
The insurance company is going to investigate the cause of your death when a claim arises within the first 2 years of the date of issue. You can be sure of that. The first 2 years are called the contestability period.
It will look at the events that led to your death and compare them against your original application. If the company finds that you were less than forthright, or if you somehow forgot to mention that you have a health condition or you were involved in dangerous activities all the way back to the time you applied for coverage and you didn’t mention them, it can deny payment on the claim.
In order for a life insurance company to deny a claim, the misrepresented information must be considered “material”.
Information is a “material representation” if it would have caused the insurer to change the terms of the policy with different premiums, or have been unwilling to issue it in the first place.
If an investigation finds you misrepresented facts on your application, the insurer has a couple of options.
- It can figure out how much premium you should have been paying based on the new facts and reduce the death benefit by that amount.
- Or the insurance company can deny the claim.
How the situation is handled depends on the state laws, the size of the claim, and the severity of the misrepresentation.
Each state has its own laws about the incontestability clause, so a claim could be denied due to a material misrepresentation whether there was intent to deceive or not. In most states, a policy can be voided even if the material misrepresentation has no connection with the cause of death.
In Nationwide v. Nelson, the insured had been convicted of a felony but answered the question on the application that he had not. The defendant insisted that it was not a deliberate attempt to mislead the insurer, but the court ruled that intentional misrepresentation is not required to void the policy.
In Meadlock v. American Family Life Assurance Company of Columbus, the insured failed to disclose heart issues on the application and subsequently died of ventricular fibrillation. The insurer refused to pay, citing material misrepresentations.
3. Dangerous Activities
You may have heard of professional athletes having a certain clause in their contract that does not allow them to participate in what are considered dangerous activities. That could be something fairly obvious, like skydiving, or even something far more common, such as riding a motorcycle.
The same applies to a life insurance policy. Think about it. Life insurance is all about risk management. If you are jumping out of an airplane with a parachute (that may or may not work) on your back, you’re a higher-risk applicant than someone who doesn’t engage in that kind of activity. It’s best to be honest about your risky hobbies or lifestyle when asked. If you are actively involved in one of the dangerous activities listed on the application, you can still do it, but you will need to pay to be protected.
4. Illegal Activities
This goes back to that earlier statement about common sense. If you die while committing a crime or participating in an illegal activity, the life insurance company can refuse to make a payment. For example, if you are killed while stealing a car, your beneficiary won’t be paid.
Okay. That one’s fairly obvious. But this next point might surprise you. What if you’re doing something illegal and you don’t even realize it? Maybe you’re walking on private property. Trespassing is a crime — even if you don’t know you’re trespassing. Let’s say you’re being chased by a big dog, and you have a heart attack and die. If it turns out that you were trespassing, your claim could be denied.
5. Act of War
Some life insurance policies have an Act of War exclusion. It’s not designed to exclude soldiers. Rather, it’s in place to deny claims for civilians who are killed in wars or by acts of war, such as journalists whose job takes them into the midst of battle on a regular basis, or people who travel to regions of the world where there’s armed conflict.
6. Living Outside of the United States
Here’s one you may not have considered. Let’s say you take out a life insurance policy while you’re living in the United States, and then you move to another country.
There could be a clause in the policy that excludes the payment of a death benefit if you are not living in the U.S. at the time of your death. Be sure to look for any mention of this in your contract, especially if you see yourself leaving the U.S. in the near future.
7. Fraud
When a death claim occurs after the 2 year contestability period, the insurance company must prove fraud to deny a claim.
Insurance fraud is a “specific” intent crime. This means the prosecutor must prove that the person involved knowingly committed an act to defraud.
Life insurance is a type of contract, and with all contracts, fraud can void the entire agreement.
If you provide material misrepresentations with the intent to defraud or to facilitate fraud, you may also be guilty of insurance fraud, which is a crime.
8. No Insurable Interest
In the field of personal insurance, one is held to have an unlimited interest in one’s own life. “Insurable interest” must exist at the time of the contract. Continued insurable interest, however, need not be demonstrated. A divorced woman may continue life insurance on the life of her former husband and legitimately collect the proceeds upon his death even though she is no longer his wife.
For someone to purchase an insurance policy on your life and be considered the beneficiary (making them beneficiary-owner), they must be able to demonstrate an insurable interest. Do note that even with an insurable interest, anyone who wants to insure your life would also require your consent before a policy could be issued. There are some exceptions, such as a parent buying coverage for a minor child.
Insurable interest examples:
1. In the case of individuals related closely by blood or by law, a substantial interest is engendered by love and affection.
2. In the case of other persons, a lawful and substantial economic interest in having the life, health or bodily safety of the individual insured continue, as distinguished from an interest which would arise only by, or would be enhanced in value by, the death, disablement or injury of the individual insured.
3. An individual party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a closed corporation or of an interest in the shares, has an insurable interest in the life of each individual party to the contract and for the purposes of the contract only, in addition to any insurable interest which may otherwise exist as to the life of the individual.
4. A charitable organization as provided in section 501(c)(3) of the internal revenue code, which has a policy ownership interest has an insurable interest in the life of each proposed insured who joins with the charitable organization in applying for a life insurance policy naming the charitable organization as owner and irrevocable beneficiary.
If a life insurance policy lacks an insurable interest at inception, it is voidable It, therefore, follows that if no insurance policy ever legally came into effect, then neither did any of its provisions, including the statutorily required incontestability clause. The incontestable clause is no less a part of the contract than any other provision of it. As a result, the incontestability provision does not bar an insurer from asserting a claim on the basis of a lack of insurable interest after the incontestability period expires.2
9. Policy Replacement
If you do replace existing coverage, the new policy may contain new suicide and contestable periods. The following would be considered replacement: you stop paying premiums on an existing policy or surrender an existing policy before or shortly after applying to us or you borrow from an existing policy to pay premiums for the insurance for which you are applying. State law may define replacement to include other situations.
Read the fine print and get insured with confidence
By no means is this a comprehensive list of reasons life insurance won’t pay. These are, however, some of the more common instances.
Bottom line? Be completely honest, and don’t ignore the fine print on your life insurance policy. You don’t want to be responsible for losing the benefits of that policy because you “didn’t know” or because you thought you could get away with something by not being 100% truthful. The best advice is to be sure to read your entire insurance contract — including and especially the fine print — before you sign it.
If you’re unsure of anything, just ask. That’s what our claims specialist is for, to guide and direct you to the insurance policy that’s best for you. They will read the fine print with you and help you understand what it all means, especially as it pertains to your particular situation.
To talk with our experienced Life Insurance Lawyer, contact our preferred life insurance claims specialist.
Have Questions?
- Talk with an experienced life insurance claims specialist.
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FAQ’s
Reasons life insurance won’t payout?
- Suicide
- Smoking, or another health-related issue
- Dangerous activities
- Illegal activities
- Act of war
- Living outside of the United States
- Fraud
- No Insurable Interest
- Replacement
Does life insurance pay for suicidal death?
Depending on what state you live in, there could be a suicide clause in your policy. If there is such a clause, and if you were to commit suicide within the specified time frame, your beneficiary would only get the premiums back, not the death benefit.
This suicide clause is an incontestability clause, a window of time during which the insurance company can investigate and deny claims. The period is usually one to two years in most states, and it begins as soon as the insurance policy goes into effect.
How long do you have to have life insurance before you die?
It depends. If it is a term, universal or whole life policy it is same-day coverage once it is in force. If it is a guaranteed issue policy, it can be up to 2 years.
References
- http://www.insurance.ca.gov/01-consumers/105-type/95-guides/15-gen/insur-fraud-is-felony.cfm
- https://www.opic.texas.gov/life-insurance/rights/
- https://content.naic.org/sites/default/files/inline-files/JIR-ZA-34-03-EL.pdf
- https://www.supremecourt.gov/DocketPDF/18/18-7709/86616/20190205152949620_00000012.pdf
- https://courts.delaware.gov/opinions/download.aspx?ID=160700
- https://casetext.com/case/meadlock-v-am-family-life-assurance-co-of-columbus
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Brian is the founder and CEO of Insurist and carries Life, Health, and Property & Casualty licenses in all 50 U.S. states. Since 2013, Brian has been a member of Million Dollar Round Table, a designation for the top 1% of financial advisors worldwide. Brian has been featured in Yahoo! Finance, Money.com, Entrepreneur.com, Life Happens, Forbes, MSN, and Good Financial Cents. Brian’s goal is to show customers the best products, the quickest answers to their questions, and provide expert advice.
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Grant's past experience includes work as a licensed sales agent for Hagerty Insurance. He has reviewed thousands of existing auto policies across the nation and issued hundreds of new ones on everything ranging from classic cars undergoing restoration to modern exotics and motorcycles.
Thank you for the information. My momma recently died. She had an insurance plan since August. Which is helpful to be able to receive $500 or so unless it is deemed an accident. Her death certificate is listing Cardiac Pulmonary Arrest, I was looking at her ER records and it stated that she ran out of oxygen and collapsed on her way to get more. I am trying to see if this would fall under accidental death. I just can’t seem to find clarity on what is considered a “covered accident” We are hopeful as the amount is small but enough for cremation and placement in her fathers grave.
Insurance is hard!
Hi Shelly!
In this case, this is not “accidental”. Accidental death is one where death occurs absence of health-related matters. For example, if she was killed in a car accident, fell off a ledge and perished, or was in a plane crash then her death would be considered accidental. Because her death was due to a medical reason (running out of oxygen indicates she was already being treated for some cardiopulmonary issue and a heart attack followed), this would not be deemed accidental.
Wish I could be the bearer of better news. Hope this helps a little.
I read somewhere that if I have both Term Life Insurance & Accidental Death and Dismemberment coverage (two separate policies from two different companies); that if I were to die in a car accident, my beneficiary would receive the AD&D claim however, my term life would not be payed out. Is this true? I need to know because if that’s the case, I’m going to cancel my AD&D coverage.
Thank you!
Hi Tim!
I do not believe this is the case, unless there is something in the term policy that specifically states otherwise. Many term policies offer AD&D riders that provide extra coverage for accidental death. I recommend you check the policy to see if this is the case or reach out to the company that wrote the policy to get absolute clarification.
Hope this helps!
-Luke
Hi!
Quick question. My father passed last summer. He started a life insurance policy March 2018 because he knew something wasn’t right, was diagnosed with stage 4 cancer the following month, and passed 2 months later. The insurance company received the death certificate and medical records from the VA last July but are still “investigating”. How long do have before they deny or pay the claim? They send bi-weekly letters saying they are still reviewing the records but I just want to be done with all of this.
Hi Ashley!
In life insurance, companies have 2 years after the start of the policy to contest the accuracy of the information provided during the application period to help curb fraudulent policies. In this situation, it seems the company is taking its time to make the determination to honor the policy and going through all the information; however, with technology being what it is, I can’t see why it would take 9 months to make the determination unless they are still requesting more info from the VA.
As a veteran, I can attest to the slowness of how the VA works and the frustrating endeavor it can be to get anything from them.
If you feel the insurance company is purposely stalling on the payout, you may want to look at contacting the Department of Insurance in your state and file a complaint. This tends to push claims to the top of the stack for resolution, whether good or bad.
Hope this helps!
-Luke
This was a very resourceful entry. Thank you. Now, my mother in law passed away last October (suicide). The life insurance policy accepted the claim, because she had the policy for more than the set amount of years they have for the suicide clause. We’re in Ohio by the way. Anyway, she was insured for $300,000 to be split 4 ways. Which would be around $70,000 each. All 4 received a check for $16,000 last month. I’m just confused as to why it wasn’t the full payment? Is it possible for the insured (my mother in law), to have set it up that way? It didn’t give us the option to decide if we wanted lump sum or payments. I’m the only one that really knows anything, and one of my brother in laws told me that they are only paying out what my mother in law made a year, not the full $300,000. I didn’t think that was correct. Why wouldn’t they pay the entire amount? That doesn’t make sense. Please help me better understand this. Thanks.
Hi Lexie!
This is something I would follow up with the insurance company about to better understand the distributions. Your mom would have had control over all the beneficiaries and in some cases the way the money is distributed. She could have opted for it to be split over the course of installments, but only the insurance company would know if you don’t have the actual policy in front of you.
Hope this helps.
My brother used a forged POA to transfer my dads life insurance policy into his name… which is being investigated. My question is, the policy had a disability waiver which had been paying premiums for at least 15 years due to my dad being disabled. My brother(same name as my father ) has been the “owner” for over 2 years now and has not made any premium payments and believes he does not have to, even though he is not disabled. It is my understanding that the owner is responsible for the payments. Am I correct and when the POA is proven to be fraudulent will this be an issue when filing a death claim?
While your brother may have been the owner, your father was the insured. If we were disabled and premiums were being paid for 15 years, then there is no need to begin paying premiums. Your father must have at some point been the owner and payor of the policy. An insurance policy can have a different owner, insured, and payor.
I don’t want to get into the forged POA paperwork. The life insurance policy should not be an issue as long as your brother did not change beneficiaries while he was the owner. The policy should pay out nonetheless. To whom is the question. I’d imagine the issue will ultimately be over who gets keeps the funds. This is a legal issue and I recommend speaking with a lawyer. We see this too often among families. I hope you resolve this amicably.
My relative named me as a beneficiary prior to her death, her employer contacted me to complete a beneficiary death claim packet and choose how I’d like to receive my payout. He also spoke with the funeral home and the finance department of the funeral home confirming I was indeed a beneficiary. I then authorized the funeral home to do the services, completed paperwork with the funeral’s finance department to be paid out directly from my portion of the beneficiary payout to cover the funeral costs. At this point the death claim is still under review any no payout has been issued because there was no official named beneficiary. There was a named beneficiary authorization form provided to the insurance company by her employer but her signature is not there to authorize me as an official named beneficiary. What should I do? He’s already called me and said they will not pay me without it. Does this mean I’ll have to come out of pocket for her funeral? It seems like he just ripped the signature part off as it was only 1&1/2 docs submited with the claim. The insurance company hasn’t made a decision yet, why is her employer saying that?
Interesting. If the insurance company does not pay the proceeds to you, then it goes to her estate. This sounds like a paperwork issue out of your control. I would push her employer to go to bat for you with the insurance company. I also recommend you consult our insurance claims attorney.
Steve C. Burgess Phone:888-428-4868 Email:[email protected]
Let him know I sent you.
Hey Brian, thanks for all the great info. What’s the best way to set up a life insurance policy on me, so that any creditors I may have at the time of my death (such as hospital, Medicare, credit cards and the like) don’t collect from the policy payout that the beneficiary (my wife) would receive?
Hi Brian. Nice name :) If you name your wife as the beneficiary, then the proceeds go directly to her. Creditors can still come after her since she is your wife since she may inherit your obligations. It depends a bit on state law on what debt passes to a spouse. Some options are to have the beneficiary be someone other than your wife. Children maybe. Another option is a trust. You may need an irrevocable living trust. This needs to be solved by an estate planning attorney. I recommend at least a free consult. It is best to find someone in your city.
I hope this helps.
Looking for some advice on a difficult situation.
I have an older friend (69) whom I met last year when I was looking for a housemate for my Dad, who could not then live alone. My friend had bought a $100K life insurance policy on herself some years earlier, and named her two minor grandchildren and two charities as her intended beneficiaries. She was living at the time with the minor grandchildren, for whom she had essentially provided live-in care for most of their lives, and her adult daughter (their mother), who has both a criminal record (theft and identity theft) and anger issues. Sometime in the last few years, the adult daughter brought some papers to her mother late at night in a semi-dark room, told her they had to do with confirming the beneficiaries on her life insurance policy, and insisted angrily that she sign them. My friend felt intimidated and did what her daughter demanded. She found out later that what she signed, of course, was ownership of the policy over to the adult daughter.
My friend did nothing because she didn’t know what to do and was afraid of setting off her daughter’s frightening temper. She had no assets, only $400 in monthly income, and was utterly dependent on her daughter for a place to live. (Elder protection and law enforcement had been sent to the house after mandatory reporting by witnesses to scary verbal abuse by the daughter.) In November 2017, authorities discovered that daughter had been embezzling money from the bank account of her mother and step father (who was in assisted living). Last year, the daughter threw her mom out with essentially no money to fend for herself. The daughter has since been arrested and indicted for criminal mistreatment of mom and mom’s late husband (to do with the financial embezzlement from a bank account) and theft in the first degree.
The problem today is the life insurance policy. After years of being screamed at, bullied, and isolated, my friend is understandably afraid of her daughter. The daughter’s ex-husband has told my friend that her daughter told him many times she would kill her mother. Now the daughter is facing arraignment on 6 felony counts of criminal mistreatment and 2 counts of theft in the first degree. My friend is afraid that her daughter might have her killed in order to collect on the policy to pay a lawyer. She wants the policy restored to her own ownership or dissolved … assuming the policy still exists at all?
I know that the owner of the policy has complete control over beneficiaries, etc. But is there anything that can be done here? Given that my friend was essentially tricked into signing over the policy, by a person who has been charged criminally with other examples of theft and abuse of the very person on whom the policy is drawn, is there anything that can be done? If so, what does my friend need to do? Should she contact the insurance company? Should she contact the police? Is it too late for her to do so?
This is a tough situation. I recommend you contant
Steve C. Burgess
Phone:
888-428-4868
Email:
[email protected]
Let him know I sent you.
Is there any way to customize a life insurance policy for a 68 year old male so, for example, it does not pay any benefit for the first five years of premiums? Would this make a larger life benefit more palatable for an insurance company?
thanks,
rick
Absolutely. This is called a graded or modified insurance policy. We have many options for you. I will have one of our agents reach out to you.
I have a question. My boyfriend passed unexpectedly in February. He died on Friday evening after being told earlier that same night he had been terminated from his position. He was employed from August 2018-till his passing in Feb 2019. Without going into all the details his employer will not give me any information re his life insurance policy. My boyfriend told me that he had made me the executor of the policy and his minor daughter the beneficiary. As he was terminated only hours before he passed is there any way that the policy would be terminated also and therefore be no payout? I cant understand why my calls arent returned. i do not know the name of the life insurance carrier or policy number
Terrible they are not calling you back. The company has nothing to do with the life insurance policy paying out. The insurance company pays the benefit. There is some digging that needs to be done. Like looking to see if he was paying anything for the coverage. I recommend you contact Steve C. Burgess at 888-428-4868 [email protected]. He specializes in these cases. I think he will be able to help you.
Let him know I sent you.
I just found out my Mother Had Life insurance. She died in 2004……Does the Life Insurance company pay interest on this?
The first thing to do is to find the policy. Go to https://eapps.naic.org/life-policy-locator/ and enter all the information you can. Insurance companies have been getting in some trouble recently with not letting beneficiaries know about policies and then draining the cash value to pay the premiums. If this is the case I do think you have some recourse. Let’s find the policy first.
Hi does any company insure someone who has high blood pressure that’s under control and has anxiety and depression.
Absolutely. As long as these are well controlled, we are looking at a standard/average health class. 50% of people get this health class, and the prices are low. If you are taking over 3 medications for anxiety and depression, then it is a tiny bit more (table 2). We recommend a policy with American National if you are looking for $250,000 or less in coverage and want to skip the medical exam. If you are willing to take a medical exam, we would consider either Lincoln Financial or Protective Life. Once we know the names of the medications, we can make sure we get you the best deal.
My husband passed away on 1 May 2019-Insurance company processed the claim then issued a stop payment on the check stating the policy was contestable since it was not in effect for two years. The policy was with my company-I have insured my husband since at least 2010. What are my options
We have seen this before with group policies where the insurance company verifies all the paperwork between the employee, employer, and the insurance company. I recommend consulting our insurance claims attorney.
Steve C. Burgess Phone:888-428-4868 Email:[email protected]
He may be able to put the necessary pressure to get this settled for you.
Let him know I sent you.
Hi Luke, I am in Oklahoma., having traveled from Michigan for a very solemn reason. My brother-in-law, a veteran, working for a local corporation, has passed by his own hand 7/1/19. I wish we would seen the signs or responded sooner. But, to the point, he was terminated from his job 6/26/19, had been working there since 12/10/18, and had a $200k compulsory company policy another $200 voluntary which I may expect is not honored. I am faced with many struggles to claim his effects and dispose with dignity.
By Oklahoma law, what will this policy still pay? And, If so, how long might I expect this process to take?
Thanks in advance, Mark.
I suggest you contact Steve C. Burgess Phone:888-428-4868 Email:[email protected]
He is the expert on these issues. You can contact his past employment or the insurance company. Filing a claim at the Oklahoma insurance commissioner is an option if you experience problems getting ahold of anyone that can help.
I have a question my sister died last year and I then got custody of her two older children. My nephew was murdered in may I took out a insurance policy in nov because I didn’t want to be in the same situation if something ever happen to them while I had them. Well unfortunately he was killed 7 months later. He just turned 18. He had no medical history will the insurance pay out even though its being contested and it was not more then 2 years and the death certificate says cause of death..
If the cause of death was accidental or murder, then the company should payout. Insurance companies often by default investigate any death claim that arises before two years into the policy.
If you have any trouble with the insurance company I recommend you contact. Steve C. Burgess Phone:888-428-4868 Email:[email protected]
So I’m 40 single male and want a 750-2m dollar policy I have 4 kids and if something were to happen to me I’d want them to get 500k each , I also want a policy that is covered and doesn’t increase by 100% as I get older I don’t wanna pay after I turn 80 I’d like it to pay it’s self off by that age and be guaranteed is there such a thing ? What’s the best most payable insurance without hassle
Hey Matt
Since you are still young, you would have a lot of options as far life insurance products.
If you seek $2 million in coverage, a term policy would be best. But most term policies offer up to 30 years. So it would expire once you turn age 70. Some policies offer a conversion option, though converting a $2 million policy would definitely jump in cost.
If you want the policy to pay for itself, you would opt for whole life insurance, rather than term. The downside of whole life insurance is that it is more expensive, and it does not offer as much coverage. Especially not $2 million.
Lastly, the only policies that are guaranteed, are guaranteed issue life insurance. These policies are typically reserved for people in poor health, and usually only go up to $50,000.
So, you may be seeking a product that basically does not exist.
My input would be to go with a 30-year term policy. It will offer the largest coverage, at the best possible price. Perhaps even without a medical exam, depending on your personal scenario.
You can always give us a call at 1-866-816-2100 to speak with a licensed agent that can give more information, and rates at the same time.
Hope this helped!
Hi Matt, there are permanent policies that can be designed to become paid up with no payments required after a designated age. Whole life is an option, and you can also look into Indexed Universal LIfe. We write these policies all the time. Just make sure you are working with an agent who knows what they are doing. These policies need to be designed correctly and you need to fully understand how they perform. Hope this helps.
Hello , I have a question about life insurance policy payout. I have been suffering with my Multiple Sclerosis since 1999. Just the last 8 years I been bedridden due to my complications of my Multiple Sclerosis. Just this week I have no desire to eat but only drink water . I don’t want medical treatment because I suffer long enough through the last 8years.
When I past away , will my wife get my full life insurance policy payout.
As long as you have had the coverage for over two years, yes, it will pay to your beneficiary.
I started w a 30 year term For one coverage amount
I later increased the amount doubled plus ) of coverage .Will this affect my original contest-ability date ?
Great question. The bottom line is yes. If you got a brand new policy for double the coverage, the contestability period starts over again for the full coverage amount. If you got another policy for the same amount, doubling your coverage, the original policy’s contestability period does not start again. New policy numbers equal a new contestability period.
Try to contact the agent and get something in writing that the contestability period for the first policy amount will not have a new contestability period. This will give you a legal argument if it ever gets to that. This falls under the E & O coverage of the agent, and I only bring this up if that is what the agent told you.
Please consult an attorney regarding this matter because it is a tricky issue if you were misled in any way.
Hi I have a question we my siblings and my cousins received a life insurance claim form to fill out and return to met life I called about it all they told me it was an old policy which my grandparents took out in 1944 I asked what the amount was she said it doesn’t say my grandfather died in 1971 and my grandma died in 1984 could there be some money for us to collect I’m sure they wouldn’t send claim forms if there wasn’t any thing what’s your thought on this
Met Life got in trouble a few years ago regarding not paying out policies when the insured dies. The policies would continue and use the cash value to pay the premiums until the policy cannot make payments.
https://www.courant.com/business/hc-xpm-2012-04-23-hc-metlife-death-master-20120423-story.html
They have a policy locator here: https://www.metlife.com/policyfinder/
You can fill out the form on our site to speak with a life insurance claims attorney. You can also contact your state insurance commission for assistance.
I am on dialysis for 3 years and have a life insurance for 17 years which will be expired on 2022. Just want to know if I decide to stop dialysis, will the life insurance pay after my death? If my death happens after 2022, will the insurance not pay?
This depends on the policy. Most term policies are guaranteed renewable. This means you can keep paying for the policy after the term. The problem is the premiums are usually 3-10 times more expensive and increase every year. On the physical policy, there will be an “illustration.” This will show you what the premiums are after the policy term ends.
Additionally, ask the insurance company if your policy is “convertible.” This means the policy has the option to be changed to a permanent policy with no additional medical questions.
These are great questions and it is smart to address these before the policy term ends. Contact the insurance company directly to find out your options. If they are not helpful, ask them to recommend a local agent.
Hi Brian,
Thanks for your prompt response. I am not looking for renewal or extending the life insurance because the premiums are way too expensive. I like to know if the death is caused by stopping the dialysis treatment before it is expired, will the insurance pay?
Thanks,
Hetty
My father had been working at his job and had life insurance through his company. He died a few months ago and the insurance company denied his claims , because they said he was no longer a full time employee and that he had became a part time employee. They stated that since he didn’t work a minimum of 30 hrs a week he was part time and therefore wasn’t covered under the policy. However, he was still making full payments up until he died. Does my mother have any recourse?
I recommend you contact. Steve C. Burgess Phone:888-428-4868 Email:[email protected]
My mother passed away in March from a 3-year battle with ALS. We were so involved with her care over these years that we didn’t think about getting any type of life insurance. What type of policy could we have gotten that would have properly paid-out without hassles? Thank you in advance!
Most likely a guaranteed acceptance policy would have been the only option. These policies come with a modified benefit that provides only a return of premium, plus 10% during the first 24 months. After the second year, they pay a full benefit. These policies go up to $40,000 in coverage.
Thank you Brian! How bad are the premiums for $40k coverage? Do they remain fixed or do they change over time? If we needed more coverage than just $40k would it have been possible to get multiple policies?
The premiums remain fixed and they build cash value. You can buy multiple policies to get more coverage. Ex. a 25k policy, another 25k policy, and a 40k policy for a total of 90k. The pricing depends on age. We have a free comparison tool here https://www.truebluelifeinsurance.com/guaranteed-issue-life/
As an example, A 65-year-old female could get a 40k policy for $3755 a year.
That’s great to hear! Thank you for the link and examples! We definitely should have gotten this coverage for my mom and certainly will be looking into it for my dad. Thank you again!
my wife and I have had (2) term policies($250k each) for over 10 years with each other as beneficiaries. We filled this as a married couple, and unfortunately our paperwork for being married wasn’t filled properly as was done out of the country and we are not in fact legally married. . Is this cause for non-payment of the policies? What should our next steps be?
This is a strange situation :) You do not have to be married to name each other as your beneficiary. There may be an issue if her last name on the policies is your last name and not her maiden name.
First I would look at your wife’s policy and confirm the name on the policy is correct.
Either way. This can be easily rectified with a change of beneficiary form and a change of owner form. The good news is that you are past the two year contestability period, so if this was a simple mistake you are ok. Contact the insurance company and get the forms to update the beneficiary and owner on one of the policies if needed. Please note that this is not legal advice.
My daughter’s new husband as of 2016 reportedly reassigned his beneficiary to her a couple of days after the wedding. He passed 2019. He was a veteran. The insurance company had begun making payments to my daughter until his parents barely six months after his death have brought a lawsuit against the insurance company and my daughter for the full amount of his benefits. Under what circumstances can they contest her as sole beneficiary, when the parents themselves said it was “his (their son’s) wish that she be the sole beneficiary” and the insurance company had already initiated payments, and this is a very large insurance company. What type of mistake could have been made, and, I guess, missed, that the insurance company would have initiated payments, only to stop them because his parents are suing for full amount? Thanks for any insight.
This sounds like a terrible situation. Contact our preferred claims specialist here.
My husband may donate part of his liver to his mother. Is there any fine print that would exclude him from receiving benefits in case of the rare occasion that he would die during or soon after surgery? He’s only 26 and in almost perfect health.
From my understanding. If he:
1. already has a life insurance policy
and
2. when he got the policy, he had no plans to donate part of his liver
then the policy pays out as normal. No issues.
My father died in a tractor accident. Now the insurance company says the policy is cancelled because it wasn’t a naturally occurring death???
I’ve never heard of something so ridiculous. Life insurance of course covers accidents.
Contact our claims specialist