If a person passes when the life insurance policy is still in underwriting does the insurance company still have to pay out?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a person passes when the life insurance policy is still in underwriting does the insurance company still have to pay out?
My stepdaughters lost there mother to cancer. Their
stepfather took out a 100k policy on himself naming them as
a beneficiary but he dropped dead of a heart attack while
the policy was supposedly still in underwriting. They are
claiming they don’t have to pay out because of this reason
and the heart attack was a preexisting condition. These girls
are still children. They have nothing left now.
Asked on October 11, 2016 under Insurance Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
An policy in underwriting has not been issued. Payment is not required on a policy if the insured passes away before the policy is issued and in effect. While this timing is truly unfortunate, it appears that the insurer is correct: since no policy was in effect when he passed away, they do not need to pay.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.