What is the name of your state (only U.S. law)? Alabama
Years ago, Mother-n-law bought life insurance thru her employer. It had a disability rider that stated if she became disabled the premiums would be paid thru premium waiver. She also has a copy of a letter dated 1991 where the life ins company said that her waiver was approved and they would pay her premiums. MIL went into a nursing home in 2005. In 2007 the life insurance company sent her a letter to reverify her disability. They sent it to an old address and because she had not lived there in 2 years the forwarding order was expired. When they did not get the reverification of her disability, they cancelled her life insurance. We can prove that she has been in a nursing home since 2005 and is mentally and physically incapacitated. Did the insurance company have a right to cancel her? My husband is sole beneficiary and we anticipated using this money for funeral expenses when she passed away. Now they say there is no life insurance available. Do we have rights as the beneficiary to contest this? Do we have to wait for her to pass away to contest? She is the owner of the policy, but she is not able to even know what is going on. Anyone have any advice or knowledge on what our rights are?
Years ago, Mother-n-law bought life insurance thru her employer. It had a disability rider that stated if she became disabled the premiums would be paid thru premium waiver. She also has a copy of a letter dated 1991 where the life ins company said that her waiver was approved and they would pay her premiums. MIL went into a nursing home in 2005. In 2007 the life insurance company sent her a letter to reverify her disability. They sent it to an old address and because she had not lived there in 2 years the forwarding order was expired. When they did not get the reverification of her disability, they cancelled her life insurance. We can prove that she has been in a nursing home since 2005 and is mentally and physically incapacitated. Did the insurance company have a right to cancel her? My husband is sole beneficiary and we anticipated using this money for funeral expenses when she passed away. Now they say there is no life insurance available. Do we have rights as the beneficiary to contest this? Do we have to wait for her to pass away to contest? She is the owner of the policy, but she is not able to even know what is going on. Anyone have any advice or knowledge on what our rights are?