Questions for Life Insurance.

[supriyaa]

What is the name of your state? CA

In reference to my father's insurance with NY life Insurance company, I would like to have some of your advice.
My father got himself insured with NY Life as of 01/09/2001. He paid his due monthly payments on time for $199.00 monthly for the life Insurance until July 2001. After that, due to financial blockage, he was unable to make the payment for aug01. So he informed his agent over the phone that he needs to change the policy, reduce either the term or amount of the premium so that whatever was paid before can be adjusted for a couple of months and not letting the policy lapse. All this was done over the phone and no written request was being made. My father did not make the payment due as he received a print out document from the insurance agent handed personally on sept 07th 2001,to my father which clearly stated that premium due for aug and sept was to be paid by Oct 7th 2001.
Unfortunately, my father expired on sept 26h ,01 due to a sudden heart attack.
After informing the insurance company, a claim was filed which was denied. I further followed it up with Insurance dept of california, which state that I should discuss this matter with an attorney. And so I am seeking your help, if possible. Please let me know if there is anything possible.

Your response is highly appreciated.

Thank you.

 

[Bigfoot]

There are too many unknowns for me to be able to give you a direct answer. You don't indicate if this is a modified that was intended to pay a portion of the benefits each year. The premium is fairly high, which could be because of your father's age, his health or the face amount of the policy requested.

The policy officially lapsed after nonpayment. It's doubtful that the agent can be held responsible for anything, because a policy change form was never put into effect. The most the company may be willing to do is to return the premiums paid into it.