Can a death benefit be denied, if there was no notification that thepolicy ownerdefaulted on payments?

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Can a death benefit be denied, if there was no notification that thepolicy ownerdefaulted on payments?

Term life insurance policy for $50,000. Policyholder made monthly payments for 10 years until 12/10. At that time, he was diagnosed with dementia. His family was not notified that payments were not made. His heirs only found out that payments were stopped after making a claim for the death benefit, which was denied by the insurance company.

Asked on July 13, 2010 under Insurance Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am sorry for your loss.  Insurance companies are strictly regulated as to cancellation of a policy of an insured.  The must send a certain number of notices of cancellation, it usually must be of a certain type size, etc. Was it a whole life policy or a term policy?  Either way ask for proof of the notices sent.  Once received then take them to an attorney to see if the cancellation was proper under the law and if it is worth bringing an action against the insurance policy for invalid cancellation and payment out of the policy.  Also kas what the legal fee will be so that you can make an informed decision. Good luck.


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