Had a client who was a friend with a 15 year level term that I sold him in 2002. His initial rate guarantee expired 3/15. I contacted the company and was told the policy would cancel on 5/16 unless he paid a quarterly premium $12,000+. Well he died on 5/6. I call the company again. Was told the policy has a 62 day grace period. First 31 days coverage, but the next 31 days a premium can be paid and the policy can be reinstated without question. Was advised to call the beneficiary and tell him to submit payment and file a claim. I did and when he called the company told him they would not accept payment. Now he is angry at me and the company. He knew the policy had not been paid and didn't expect any benefit. I call him like I was advised to and he is now upset. If I would not have called him and he could have made payment and he found this out he would have probably sued me. Now I hoping the company will take a second look at this.
Got a Situation
- Thread starter billyb
- Start date
- 11,274
The original person you talked to... didn't put any notes in their system about your conversation so anyone else could figure it out?
Do you have that original person's name and extension to contact them again and confirm your first conversation and perhaps have a direct person to have the beneficiary call for proper clarification?
Look, the first person might've gotten the information wrong... but at least know where to lay the blame for the misinformation.
Do you have that original person's name and extension to contact them again and confirm your first conversation and perhaps have a direct person to have the beneficiary call for proper clarification?
Look, the first person might've gotten the information wrong... but at least know where to lay the blame for the misinformation.
- 477
It's been a year since the lapse, and it's still not worked out?
He is saying it lapsed 5/16/17.
- 8,707
Wouldn't that be will lapse 5/16/17 it is only the 11th right.
- Thread starter
- #6
3/15/2002 to 3/15/2017 $300 quarterly
3/15/2017 premium increased to $12,375 quarterly
From 3/15/2017 to 4/15/2017 1st 31 days grace period with coverage
4/15/2017 to 5/16/2017 2nd grace period with no coverage, but can reinstate with payment
Died on 5/6/2017 in the 2nd grace period. I was told if he made payment he could file a claim. I instructed him to do so and the company would not accept payment when he called them. This is being looked at closely and the company will let me know their decision.
3/15/2017 premium increased to $12,375 quarterly
From 3/15/2017 to 4/15/2017 1st 31 days grace period with coverage
4/15/2017 to 5/16/2017 2nd grace period with no coverage, but can reinstate with payment
Died on 5/6/2017 in the 2nd grace period. I was told if he made payment he could file a claim. I instructed him to do so and the company would not accept payment when he called them. This is being looked at closely and the company will let me know their decision.
- 742
Can you share the carrier? This is quite the situation to be in. One that should be shared with every client going forward when talking about conversions, re-writes etc. This is why policy owner service is incredibly important.
Agree. share them.
I recently had a client "forget" to send his annual premium in on his policy, and the carrier reinstated him a week prior to lapse. Granted he wasn't dead, but still... the policy with my carrier sounded exactly like the OP carrier.
If it was ME, and I was the beneficiary... I would first see if premium payments can be paid online....and if not I would overnight the payment to them so they have it in hand prior to lapse. Then I would fight. They can't change the rules because they know the insured is deceased.
- 4,023
I wouldn't share the carrier on an open forum. Not in this litigious era.
- 24,964
I would look for the wording similar to "while alive" somewhere in regards to the 31st to 60th day. Or evidence of insurability.
Let us know how this works out.
I had an interesting claim recently that I will post in a separate thread.
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