Bankruptcy and Life Ins.

[onetime_77]

What is the name of your state? MO

I am wondering why life insurance has to know if you have filed a bankruptcy. My soon to be father inlaw is handling our life insurance work (that's his job), and we really didn't want him to know about it. The question is in the last year, well I said no since it was actually last year....but within the last year. I know I should just call him and say, but why do they care? The fiance doesn't need to have me wacked to pay off whats payed off!

 

[seniorjudge]

What is the name of your state? MO

I am wondering why life insurance has to know if you have filed a bankruptcy. My soon to be father inlaw is handling our life insurance work (that's his job), and we really didn't want him to know about it. The question is in the last year, well I said no since it was actually last year....but within the last year. I know I should just call him and say, but why do they care? The fiance doesn't need to have me wacked to pay off whats payed off!

Q: I am wondering why life insurance has to know if you have filed a bankruptcy.

A: Because they think if you filed bk you won't live as long.

 

[Betty]

What is the name of your state? MO

I am wondering why life insurance has to know if you have filed a bankruptcy. My soon to be father inlaw is handling our life insurance work (that's his job), and we really didn't want him to know about it. The question is in the last year, well I said no since it was actually last year....but within the last year. I know I should just call him and say, but why do they care? The fiance doesn't need to have me wacked to pay off whats payed off!

I was a life ins. underwriter & our company's application asked not only about your health history, driving record, avocations, etc. but also if you ever filed for bankruptcy & when. If it was within the past year (past 12 months), we would postpone issuing a policy. We would reconsider after a year of filing if the bk was closed & if the owner (usually the one to pay the premiums) of the pol. has a job & income. The amt. of ins. must also be reasonable in relation to income. The reason cos. are concerned about a recent bk is because they are afraid you will not have the money to pay the ins. prems. if you were not able to pay your bills in the past. The pol. would then lapse after the co. went through the expense (underwriting, clerical, etc.) of issuing it. There may be cos. that will issue you coverage with your recent bk but you have to find them through an agt or soon to be father-in-law who you don't want to know about the bk. You should answer all questions on your ins. application correctly - otherwise, there is always a chance it will be rescinded for misrepresentation.