I need some advice

[Hugh Jass Nutz]

My uncle passed away today. He was 57 years old, and has had a life insurance policy since 1980. 2 months ago they switched from the bank that he was using to a new bank, and forgot that the life insurance policy was set up for automatic withdrawal. He got a letter in the mail 3-4 weeks ago, saying that he owed $128 or the policy would be canceled. That same day, my aunt paid the bill and has the statement and everything to prove that they cashed the check 3 weeks ago.

Now to my question, don't you think since they cashed the check for the $128, that the policy was not canceled and that they should have to pay the money?

They are claiming that along with that $128 dollars that my uncle needed to have another physical and that he failed to meet that requirement, so no money.

Any thoughts would be very appreciated.

 

[BUCSnotYUCKS]

Hire a lawyer because it'll be worth it.

I'd also call my local news station and drag those slums through the mud.

 

[kneifl]

They cashed the check. That should be proof enough that the policy is still valid. Try to work this out amicably with them and bring them a copy of the cashed check, your bank will provide this for you no problem. If they continue to say you're at fault get a lawyer involved, of course this is a last resort (as the lawyer will take a big chunk, but hire the best) but it will scare the shit out of them and justifiably so as you can sue for more than the policy (punitive damages, etc.). I've sued people/companies before and if you are in the right this is usually the way it works.

kneifl

 

[DoubleDown]

MY wife ran into the same situation this year. Her friend died at the age of 80, and left her $250,000, on a policy that was 2 1/2 years old.

When the insurance company did the 'right to research', they found that when the lady had her checkbook stolen, back last December, that she closed the account. Being 80 years old, she forgot that the insurance was a direct debit from that account.

Meanwhile, the insurance company sent a couple letters to her home to inform her of non-payment. When she sent the money to catch the policy up, and actually pay it ahead, it was business as usual.

But..............now that she died, they are saying that the old policy was "cancelled" for non-payment, and a new policy was issued. With her being so old, the policy has a stipulation that she must live 2 years after the policy is taken out.

When you move the date to ecember, she only lived 6 months.

Now they say my wife gets nothing.

 

[hedgehog]

MY wife ran into the same situation this year. Her friend died at the age of 80, and left her $250,000, on a policy that was 2 1/2 years old.

When the insurance company did the 'right to research', they found that when the lady had her checkbook stolen, back last December, that she closed the account. Being 80 years old, she forgot that the insurance was a direct debit from that account.

Meanwhile, the insurance company sent a couple letters to her home to inform her of non-payment. When she sent the money to catch the policy up, and actually pay it ahead, it was business as usual.

But..............now that she died, they are saying that the old policy was "cancelled" for non-payment, and a new policy was issued. With her being so old, the policy has a stipulation that she must live 2 years after the policy is taken out.

When you move the date to ecember, she only lived 6 months.

Now they say my wife gets nothing.

insurance companies look for any reason not to pay a claim or short a claim, its a game to them.
I have run into this at work, dealing with vehicle total losses

 

[SixFive]

insurance companies look for any reason not to pay a claim or short a claim, its a game to them.
I have run into this at work, dealing with vehicle total losses

these kinds of stories really tick me off. Both of the above life insurance stories need to seek legal representation.

If I didn't fight my health insurance company, there would have been a lot of bills in the past that weren't paid. I do not let up though, and eventually they do pay.

 

[GENO]

The insurance industry is regulated by the state you live in and the state the company is domociled in. Contact your local state department of insurance to file a formal complaint, and CC a copy to the claims department of the insurance company in question. Provide copies of all supporting documents in both letters and send certified mail, return receipt requested to each. Advise the insurance company in a cover letter that you intend to retain legal counsel and pursue if issue is not resolved in 30 days. Then get an attorney and follow thru!

 

[layinwood]

Geno nailed it.

 

[Old School]

:iagree:

 

[Hugh Jass Nutz]

thank you for all the advice, I will keep you posted.