How fast is a Life Insurance benefit paid?

Any Insurance Pros out there?

My Uncle died and my Aunt is having a time with her company and agent. My uncle had a 20yr Term policy that was not past its' 'exclusions' date. Now the company is saying that he took his own life and is refusing to pay (carbon monoxide in the garage).

First - How long should it have taken to get paid after he died?

and Second, should we fight the 'exclusion', which we are, because it wasn't suicide. The policiy was in force just under 2 years and the exclusion is 2 years I think. Any help is appreciated. Thanks.

B

Well, the INSURANCE company doesn't say he took his own life - they don't get to make that call. They have to go by whatever the coroner says on the death certificate. Period.

IF the policy isn't contestable, and the death is natural causes, it's usually paid 2 - 3 weeks after all the paperwork is received by the insurance company.

yes, the contestable period in ANY policy is 2 - 3 years. It should be an easy battle, as long as the death certificate doesn't say "suicide". Because the death certificate is all that counts.

Take your written declination, and a certified copy of the death certificate, and mail it to your state insurance commisisoner, pointing out that the cause of death was "accidental" or whatever the certificate says.

If you want your aunt to get paid, you need to fight the decision. The suicide exclusion is very clear and binding. You may want to seek the help of a lawyer to define who has the burden of proof because carbon monoxide in the garage admittedly looks fishy.

It's irrelevant how long it would have taken if he died beyond the contestability period.

Best wishes to you and your aunt in this trying time.

All life insurance policies have a suicide provision that says if the insured commits suicide during the first 2 years while the policy in enforced, the insurance company is only liable to the total amount of premiums paid.

I suggest getting a lawyer because the insurance company is going to stick to its story that your uncle committed suicide, but the death could of been accidental. Maybe the garage door was broken or maybe it wasn't. Who knows what your uncle was up to when he decided to turn on the car and left the garage door closed...