QUESTION
Is it legal for an insurance company to deny a claim and keep the paid insurance if you die over a certain age?
Asked on Feb 28th, 2014 on Litigation - California
More details to this question:
My father died in 2013 at the age of 88. He had a paid up life insurance policy. After death we tried to collect to pay the funeral bill. But the insurance company said since he was over 85 yrs old they don’t have to pay and could also keep money paid for the insurance. Is that legal?
15 ANSWERS
Edwin K. Niles
Read the policy; I would have to in order to answer.
Answered on Mar 04th, 2014 at 5:48 PM
Insurance is a contract. Any answer would have to be based on the contract language. However, insurance is regulated by the state and you may want to consider contacting the insurance commissioner for your state. That office may be able to give you some information, be sure to have the policy on hand.
Answered on Mar 04th, 2014 at 5:48 PM
You need to read the insurance policy to determine if what they say is true.
Answered on Mar 04th, 2014 at 5:48 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Was it a term policy? Then probably. You need to read the terms of the policy. If it was whole life or possibly universal, then no. Again, you have to read the terms of the policy.
Answered on Mar 04th, 2014 at 5:47 PM
You have to look at what the terms were of the contract with the insurance company. Also demand that they point out to you those terms.
Answered on Mar 04th, 2014 at 5:47 PM
It if was a whole life insurance policy, the estate or the named beneficiary has claim to the proceeds. However, if it was a term life insurance policy, the company only pays out if the policy holder dies by a certain age. Term life is meant as replacement of income for the family of a who person dies during his or her working (income producing) years. Check the language on your father's policy to see which kind of insurance he had.
Answered on Mar 04th, 2014 at 5:47 PM
Thomas Edward Gates
It does not seem legal. You need to retain a probate attorney. You also need to have an Executor appointed by the court. They would represent the estate in any claim.
Answered on Mar 04th, 2014 at 5:47 PM
Insurance is a contract. You need to read the policy to determine what the life insurance company's liability is.
Answered on Mar 04th, 2014 at 5:46 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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This sounds very unusual. Someone would need to review the policy to be sure. It does not sound right, however.
Answered on Mar 04th, 2014 at 5:46 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Insurance is a contract. The terms of the insurance policy will govern. You might contact the insurance commissioner to see whether there's a term in the contract that isn't lawful.
Answered on Mar 04th, 2014 at 5:46 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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Term Life insurance is purchased for a specific number of years. If the insured outlives the term of years purchased then the policy is no longer in force. Whole life insurance is purchased with the intention that it last until death. Whole life policies that are designed such that premiums are to be paid out of earnings or the accumulated cash value of the policies can terminate when there is insufficient earnings or cash value to pay the annual premiums. Life insurance with paid-up premiums have to be checked to determine if the value of the policy is enough to allow it to continue in force so long as the insured lives.
Answered on Mar 04th, 2014 at 5:45 PM
Bankruptcy Attorney serving Federal Way, WA
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Freeborn Law Offices P.S.
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Sounds a little strange. What does the written policy state?
Answered on Mar 04th, 2014 at 5:45 PM
2 Awards
It depends upon the terms of the life insurance policy. Read the policy or contact an attorney for help.
Answered on Mar 04th, 2014 at 5:45 PM
3 Awards
Maybe, you need to read the policy.
Answered on Mar 04th, 2014 at 5:45 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The terms of the policy generally control. Do you have a copy of the policy? If so, you may want to file a complaint with the Depart of Insurance for California; if not file with the insurance department anyway.
Answered on Mar 04th, 2014 at 5:44 PM