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death after divorce

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auburnamazon

Guest
What is the name of your state? Colorado I have continuously for 18 years had a life insurance policy on my (now) ex-spouse through my employment insurance benefits package. I carried it on him even after we separated as we have 5 children and he could not be counted on to be responsible for their future. We officially divorced in may and he died yesterday (november 17th). Can I still collect the the bennefit? I still have his student loan through Sallie Mae that I'll have to pay for and his children to care for. :confused:
 


cbg

I'm a Northern Girl
If you are still listed as the beneficiary, you can still collect.

If you're not, you can't.
 

Dandy Don

Senior Member
Your status as divorcee has no effect on your ability to collect on this policy. If you kept current on paying the premiums, and if you designated yourself as beneficiary, then you need to be contacting the company to file a claim.
 

ALawyer

Senior Member
You said the policy in question was obtained through your employer. While given the fact that he died the same calendar year you were divorced, Because of that I think you'll probably be okay, BUT depending on exactly what type of policy it was, and the exact language in the policy, there could be a different result, and likely would be if you had traditional group coverage and the divorce came a year or more earlier than the death.

Various types of policies are sold at the work place; life coverage obtained at the work place can come under a traditional "group policy" form, or in the form of individual "franchise" policies with a sponsor, or as pure individual policies that just happen to be sold at the work place. True, the employer may facilitate payroll deduction in each case, but here form matters more than substance in some cases.

If yours is an individual policy, you own it and can continue paying the premiums and take it with you if you change employers. If you get divorced, it does not matter, you still own it and can maintain it as long as you like (subject to some limits built into term policies -- some may say they provide coverage to age 65, 70, or 75, etc.); other may be 10 or 20 year term and then expire, requiring a new application and new underwriting.

Group policies are different as they usually are a part of an employee benefit plan, and are often issued without any underwriting -- merely being an employee or the spouse of an employee enables you to get coverage, or for larger amounts, there is very simplified underwriting -- such as a few questions that eliminate the most dangerous risks. The insurance company is sacrificing selectivity in exchange for getting a very broad cross section of the work place population and their families as that should tend to generate average mortality experience.

Very often as an employee you can elect to cover yourself, your spouse and your children. BUT you can not elect to cover other family members (a parent, uncle, etc.) or strangers, and an ex-spouse is usually regarded in the stranger category.

Thus once your husband became your ex-husband you may be precluded from continuing to cover him by the terms of the group policy, just as if you quit the job, the coverage would lapse. (Very often you would have the right to convert the group policy certificate to an individual policy, but there are tight time frames for doing so as people who are not otherwise insurable tend to convert and they have lousey claims experience, whereas healthy people go through traditional underwriting and can buy new separate coverage inexpensively.)

However, all is not lost as very often the old certificate continues in effect -- and the employer continues making deductions -- until the next enrollment period. They usually occur on a calendar year basis. So as it is the same year you'er probably okay. IF, however, the carrier denies coverage, don't take NO for an answer -- see a lawyer who knows insurance right away.
 
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