Group Life Policy

[marcie53]

Six months ago I found out that our home is in a "survivorship" deed with my husband and mother in law. She was supposed to sign off when we finished repaying a loan (which was repaid last year), but she is refusing to quit claim, and is trying to hold us up for an additional 65K. My husband refuses to sue her for partition. Since the house would go to her in the event of his death, the only protection I have is a group life policy with CIGNA (Ct General Life) through his employer United Technologies.We pay for anything over 1x his pay. It is for 4x his pay , with AD&D at 8X his pay, also travel life (business trip ins. at 4x his pay. That would cover the cost of my buying a place to live...but I am concerned as to thier track record on denying life claims. My husband is only 39, doesn't smoke, drink more than 2 beers a week, and has an extremely conservative lifestyle. However, we have never gotten any written info on this policy as far as exclusions etc. Can you tell me , do they have a good track record as far as being upstanding? I live in Connecticut.Thanks...MK

 

[ALawyer]

IF your husband remains employed with the firm he works for and keeps the coverage at the existing level and IF they keep the group life insurance plan you should have nothing to worry about in terms of collecting proceeds in the event of his death.

To the extent it is pure group insurance there is no individual underwriting, and thus no basis to refuse a claim. That's of course assuming he is regularly employed at the time of death and had not decreased the amount, changed beneficiaries or become ineligible.

To the extent there are any individual elements of the plan and he made false statements about his health in the application process, they could contest a claim if the death occurred within 2 years of policy issue. BUT in general CIGNA is regarded as one of the better group carriers.

BUT you freally ought to get the house situation involved without destroying your marriage in the process.

 

[marcie53]

Thanks for the reply. Your answer makes me feel a lot better!!UTC has used Cigna for a long time. Unless the company undergoes severe financial problems I don't think they would change thier life insurance benefits package.Also, he didn't lie about anything on the application...his health is excellent. My husband has been there for 17 years, and plans to stay until 65 yrs of age. As far as resolving the house situation with my mother in law, I don't see that happening in the near future. We don't have 65K to give her, and she will never sign the quit claim without a minumum of this amount. A doctor told me there maybe some dementia setting in with her, and down the line, it may be necessary for either my husband or his brother to get guardianship, and power of attorney for her. We are trying very hard not to let this effect our marriage, and so far it hasn't to a large extent.I understand she's mentally unstable. Anyway, I feel better after reading your reply that they are a good company to deal with. Thanks again. MK