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Insurance Company Denying A Claim

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L

lonni

Guest
New York State

My grandmother recently passed away and I found a life insurance policy which was purchased in 1967. The insurance company is claiming that they do not have any records of it. I have the original insurance policy. I have not found any paperwork indicating any problems with the policy. The company has not been cooperative to investigating this issue. I am inquiring what options do I have to handle this matter.

Thank You
 
Last edited:


C

CIAA

Guest
You can request assistance from your State Department of Insurance. I believe that , generally, insurance companies are to retain records on policy activity for 7 years. You should also search through your Grandmothers' records for any proof of past premium payments.
 

ALawyer

Senior Member
What kind of life insurance was it?

With the exception of "single payment life insurance" -- which are rarely purchased outside of a business setting -- all term life insurance policies require regular monthly to annual payments to remain in force. If the owner does not pay premium, the coverage ends, although the owner still holds the paper policy.

Policies for whole life, endowment plans and universal life -- all with some cash value -- also call for regular periodic payments. While if one stops making payments on those policies they may remain in force for up to several years, depending on the extent of cash value, they too eventually lapse.

There are huge lapse rates on individually purchased life insurance, as agents that sold the policies leave the business and switch companies, people decide they do not need or no longer can afford the policy, etc.

Go thru the checkbook and see if there were any premium payments made in the past 10 years. If not, forget it.

If the insurance was provided by an employer, and she retired with the employer, contact the employer. Many companies provide continued life insurance coverage, often in decreasing face amounts, as a retirement death benefit.
 

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