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not notified of life insurance cancellation

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Ky mustang

Junior Member
What is the name of your state?What is the name of your state? KY
My father just recently passed away from cancer. He had an employer paid life insurance policy of $10,000. He and my mother was told not to forget about the policy by his employer just weeks before he passed on. A few days after he passed on his employer called my mother to come by and talk. He informed her my fathers life insurance had been cancelled and he did not know how.
My mother talked to a former secretary of his that said she remembers him cancelling all employees life insurance policyies due to raised rates. My mother also called the insurance company to ask when and who cancelled the life insurance policy. Ater explaning to them what had happened the insurance company said the dept. of labor needed to be notified , because this was not right.
My father's employer is my mother's nephew so she wanted to be civil about this and talk to him. She asked him to pay her the ammount . He became enraged and threatened to sue her for 3 1/2 months of salary he volentarily paid my father while he was unable to work. My mother informed him of the insurance company suggesting to contact the dept. of labor and he became even more enraged and said they had nothing to do with this.
I want to handle this civil my self and have thought about talking to him myself. I would think legally they should have notified them of the cancellation. Does anyone have any views on this subject? Thanks
 


Beth3

Senior Member
If the life insurance was employer-paid, the company could cancel it whenever they wished. The question is whether, under your State's laws and the terms of the policy, the employer had to provide the employees information regarding converting the policy to a private one. If your father's life insurance booklet is still about, the information should be contained in there. I do suggest you or your mother contact the DOL and see what they say as well.

The cousin's assertion that he will sue your mother for the salary he voluntarily paid your father while he was ill is ludicrous.

My condolences on the loss of your father.
 

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