Is There Much Trouble Collectiong On Life Ins Claims?...

[MellowCat]

What is the name of your state? Texas

I have some general questions, not really legal ones...

I know it can be like pulling teeth getting legitimate health claims paid. Is it the same way with Life Insurance claims? I realize filling out the paperwork honestly and completely is key, but are there any other snaky maneuvers of which one should be aware from the beginning?

I'm particularly suspicious of a company that told me that no doctor visit would be necessary; they will send a doctor to MY HOUSE themselves. Sounds like an opportunity to screw me later. (Call me cynical - but I can see it now: 30 years from now, the ins. company will say since a real medical doctor didn't examine me in a true clinical setting, the policy is invalid because the health questionnaire "couldn't have been accurate.")

What if you have a policy with a po-dunk company (Generic Life) as opposed to one of the big boys (i.e. MetLife, State Farm)? A good AM Best rating is good and all, but what if your life ins. company went out of business or went bankrupt? What would become of the policy?

Is having a local agent better? I feel better about having one, but the on-line quotes have beat all the agents' I've checked with locally (by a lot). Problem is, all the on-line companies appear po-dunk no-name companies.

Any thoughts, exerience or advise guys? Thanks a million.

 

[ErinGoBragh]

I work for a major life insurance company, and sending a doctor to the house is quite common. It costs us quite a bit, but not nearly as much as our commission will be and it's convenient for the customer.

Get a local agent. They're more expensive because they will stay on top of things, make sure your beneficiary changes go through, that if you need to withdraw cash values from the policy you get the money when you need it, etc.

 

[ErinGoBragh]

By the way, in most cases, if it's a fairly uncomplicated inheritance, there's no probate, beneficiaries are clearly named and surviving, etc, it's a matter of filling out a form, mailing it in and waiting a few weeks for the check to arrive.

And DON'T go for a podunk company. You're better off going through New York Life or MetLife, etc. They are far less likely to tank.

 

[Betty]

I worked for a major life ins. co. also for 36 years & I agree with everything ErynSMA said.

 

[ErinGoBragh]

I wanted to post this link for you as well. This is a commonly-used company for doctor outcall. This website is meant for agents, but this way you can see it is a a legitimate service:

http://www.myexamone.com/

 

[Oldforestor]

Not so

And DON'T go for a podunk company. You're better off going through New York Life or MetLife, etc. They are far less likely to tank.

Eryn, VERY FEW life insurance companies "Tank" and ALL death benefits get paid even when they do. What you have posted is incorrect.
Please post any examples you have of unpaid death claims of insolvent companies.

 

[Betty]

Eryn didn't say the death benefit wouldn't get paid - just that a lessor known co. has more of a chance to "tank" (go insolvent) than a large/well known co.

 

[Oldforestor]

Once again incorrect.
Mutual Benefit, First Capital, Monarch...
All top tier A+ and very well known and respected companies.
A larger and more real danger is actually the prospect of management taking a mutual
company public, taking hundreds of millions with them and changing the
obligaitions to the contract holders...ie
Northwestern National, Anthem Blue Cross, John Han****(not sure on the last one)

 

[Betty]

Everyone is entitled to their opinion & based on what they know. Eryn works for a life ins. co. & I did for 36+ years - I just know from my experience the cos. that go out of business or get taken over by a larger well known co. & the cos. that don't go out of business. Eryn mentioned NY Life & Met Life - they have been around for a while I would say & will continue to be in my opinion. I don't believe anyone taking ins. out with them should be concerned.

 

[garrula lingua]

I took out a whole life ins policy sixteen years ago.

A nurse/PA came to my employment and drew blood and took urine (we all had a good laugh), and I filled out the forms.

The ins is great - it's a major ins co.
I know it's still in effect.