If the company that I retired from has been sold, can the new owner change the amount of my life insurance policy?
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If the company that I retired from has been sold, can the new owner change the amount of my life insurance policy?
I worked for a company for 35 year, then retired. I had a $55,000 life insurance policy from them. After I retired they sold the company to another company. This company has informed me that I now have a $20,000 policy. I never worked for the new company. Can they take what I earned from another company and take away over half of the policy I earned?
Asked on January 8, 2016 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
If you had a contract guarantying you a certain amount of life insurance, you could sue to enforce that contract. But without a contract, if they were just voluntarily providing life insurance for employees and were the ones paying the premuims, they could choose to provide a different or lesser amount--or even to cancel it entirely. Without a contract, they were not obligated to maintain it.
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