Life Insurance Time Frame

[Floridajeff]

What is the name of your state? Florida

First of all thank you for any help in advance. Unfortunately my father passed away on March 28th 2005. He told me he had life insurance but he always joked. About August 20th 2005 I received a letter explaining i was a beneficiary, it did not say if I was the only one or if there were others. I got the death certificate and sent it to the insurance company. August 17th 2005 the insurance company sent a letter telling me they got the documents and were processing the claim. I called the same day and I was told they usually take 3-5 days to finish once getting documents. Today Sept 8th 2005 I called again and they said the claim went to a "pending" status on Septemeber 6th 2005. My questions are this:

1. How soon must they notifiy my that i have a claim. 5 months seems very long.

2. Once they have the documents, how long is the most time they can "process" my claim.

3. Once they decide to pay, how long will it take and how do I know it is the amount my father actually paid for?

Thank you again in advance.

 

[somarco]

The answer to all your questions is . . . it depends . . .

The circumstances surrounding your fathers death, how long the policy was in force, the number of beneficiaries, etc. all affect the length of time it takes to process the claim and make a payment.

Without more details there is no way to definitively answer your question.

Was this a group life plan or individual coverage? How much money (face amount) is involved? What caused your fathers death? How long had the policy been in effect? Who are the other (if any) named beneficiaries?

August 20 to September 8 is not a long time to wait on an uncontested claim. If the claim is clean the check should be issued in the next few weeks. If there are circumstances to be investigated it could take a year or longer.

 

[Dandy Don]

What was the cause of death and is there reason to suspect that he may have been murdered?

Does the decedent have a history of being divorced from a previous spouse and is there a currently surviving wife?

 

[Floridajeff]

1. It was individual life insurance.
2. My father told me it was $100,000 and his annual salary approx $30,000
3. Heart Attack caused by Hypertensive Cardiovascular Disease
4. Length of insurance if my father was truthful about 5 years at least.
5. I do not know if there were any other beneficiaries. When I ask them over the phone they say they cannot tell me and it is for security reasons.
6. My father was divorced 1995 and remarried about 2002.
7. His first surviing wife, my mother would want nothing. I do know her very well.

Thanks again for your time everyone.

 

[somarco]

There is nothing in your follow up post that screams "pend this claim". I can take all kinds of wags but would do no good.

If you know who the agent on the case is, contact him/her and ask for assistance.

 

[Floridajeff]

I just found out it is being contested. Thank you for you answers.

 

[somarco]

WHO is doing the contesting?

Is the carrier contesting the legality of the claim? Or are heirs/beneficiaries contesting the payout of the proceeds?

 

[Floridajeff]

I am not sure yet whom has done it. They have not returnedmy phone call (Insurance company). I believe it would be my step mother. I was under the assumption there is reallynothing you can contest since the beneficiar is named by the policy holder.

 

[Dandy Don]

Sounds like the same old insurance company ripoff tactic of trying to say that there could have been a pre-existing condition that the applicant did not disclose. Let's hope father was truthful on his application.

"Security reasons" does not sound very truthful and is at best misleading.

DANDY DON IN OKLAHOMA ([email protected])

 

[somarco]

The delay can be for any of a number of valid reasons. Even though the policy is (apparently) beyond the contestable period, carriers have challenged claims where there was an obvious attempt to defraud the carrier. Not saying that is what happened here.

"Security" is just another way of saying they are dealing with PHI and dont want to get fined over revealing information that isnt supposed to be leaked. HIPAA is a real snake that prevents family members from finding out anything, even after you are dead.

Just another example of the govt interfering with commerce.

 

[Floridajeff]

I just found it that my step mother was the one who contested the claim. The law department at Prudential has already denied her claim. Prudential told me the amount of the claim, which is not, what my father always told me it was. My question is how do I know this is the correct amount he actually signed up for and paid for? Thanks