Got a Situation

[Josh]

Unless I'm missing something they still have a few days to call and keep making payment? Maybe send a certified check?

 

[LGilmore]

Not sure since it's a lapse. While you don't have to prove good health, I think you have to be alive to reinstate a life policy. Also could the guy have sent a cancel notice?

My first day on the job with NYL, there was an older woman and what probably was her daughter pleading with the office manager.

They were there about a death claim that wasn't being paid. The office manager, a truly nice man, tried several times to explain to them that the insured sent a cancelation letter to NYL dropping the policy, but died a few days after sending. They kept sobbing "but he didn't mean it!" but really there was nothing that could be done.

I think the OP got bad information from the start or wasn't clear about what had happened. But good luck. Hope it works out. From my experience especially with term policies I tell clients to just let them lapse if they don't want them anymore. Gives them an extra 30 days of coverage.

 

[BibH]

I have a client who's constantly late on quarterly payments in the 31-60 day range. I was told by the company when I called yes they will accept the payment in the 31-60 day range and automatically"reinstate" without evidence of insurability. The key word is they will"reinstate" it but they told me they would not pay a claim if he died in that 31-60 day period.This why I discourage any type of payment outside automatic draft. Mr client what if you get sick and are in the hospital for 2 months and the direct bill is not paid?Your coverage is gone.I highly doubt this company pays the claim.