What is group term life ins. and how is death claim processed if policy is less than 2 years old?

Question

death ruled natural due to alcoholism. i don't have a copy of the policy and the insurance co. said they won't send me one. why? i didn't even know this policy existed until over 4 months after my husband died. in a way, i wish i had never found out about it.

Answer 1

Group term life is life insurance purchased through your employer. Usually the employer will pay the full cost of the monthly premiums though the employee might have to contribute if a higher amount of coverage is desired. Due to IRS deductibility rules the maximum death benefit is $50,000.

Life insurance policies are generally contestable for two years. That means the insurance company has the legal right to rescind the contract if it finds that the applicant misrepresented a material fact (i.e. lied on the application)

A rescission of a contract in a group case would highly unusual because the application only asks a few basic health questions. In some cases depending upon the size of the employer there may not even be an application as coverage is automatic.

If, in the unlikely event, the company did attempt to invalidate the contract I would seek legal assistance.

Answer 2

The best thing to do is to get a lawyer. Good luck and condolence

Answer 3

They won't send you one because you're not the policy holder.  The company he works for is and they have a copy.  Just fill out the claim forms and submit.  It's not going to change the circumstances of whether or not you're due any proceeds.