More details to this question:
My brother died last week, he was in the Marines for 3 years and was dishonorably discharged thereafter however my mother continued the life insurance coverage ever since he was discharged which was years ago. The policy is for $250,000. My question is , being we are waiting for toxicology reports to come back on his cause of death, if it comes back that he died from drugs (overdose), would the SGLI still pay out to the beneficiaries? I am hearing conflicting answers, some say yes, some say no.
1 ANSWER
I am sorry to hear about your brother. I wish I had a simple answer for you but I do not. It will depend on what the actual insurance policy states. Some policies state that if a death is caused by drugs/alcohol then they will not pay. You will need to review the policy in its entirety. If you do not have a full copy of the policy, you should request one from the policyholder. Request a "certified" copy and also request a copy of the Summary Plan Description. See what the policy says about the cause of death and how that may affect whether or not a claim is paid. Even if you think the language is clear, you may want to have a local attorney look into it for you. Your state laws may provide some guidance as well. I'd review the policy in full first and then reevaluate. If you think there is any possible way to get coverage, then consult with an attorney. Keep in mind that there are likely time deadlines (per the policy and per state law) in which you can appeal negative determinations. Best of luck!
NOTE: This response is general in nature and should not be considered legal advice. No attorney-client privilege exists or is formed by this response.
Answered on Sep 09th, 2013 at 3:18 PM