Accidental Vs Whole Problem/advice

[jjh]

Fairly new to the forum, but been reading for a couple years. I'm an independent that services mostly Medicare and Individual. I have a handful of term policies, but Life isn't my MO. So, any advice would help. Client calls me regarding a friend that passed. He had filled out an Accidental Policy offer that came in the mail(1st Problem). Age, late 70s, early 80s when issued in '13. Basically, they're not paying b/c is wasn't an accident. The friend says he may have made a mistake taking this, but he knows he wouldn't have done it if he clearly knew it was for accident only. My question is does the family have any ground to stand on? Lord knows the hoops I have to jump though in the Medicare field to make sure a beneficiary knows what he/she is getting. Does an agent/company typically place a recorded call out to beneficiary after sending in something like this to make sure they know what they're getting? Etc.?
He did have a smaller whole life policy, however, it appears both beneficiaries on the policy have passed away. The insurance company has asked for a death certificate for the beneficiaries, but what happens after that?
Thanks for any information you can pass along. Poor guy only took these out so the family could afford to take him to Illinois to be buried next to his mother, and they don't have the money. Just trying show some compassion.

 

[glgamerica]

Fairly new to the forum, but been reading for a couple years. I'm an independent that services mostly Medicare and Individual. I have a handful of term policies, but Life isn't my MO. So, any advice would help. Client calls me regarding a friend that passed. He had filled out an Accidental Policy offer that came in the mail(1st Problem). Age, late 70s, early 80s when issued in '13. Basically, they're not paying b/c is wasn't an accident. The friend says he may have made a mistake taking this, but he knows he wouldn't have done it if he clearly knew it was for accident only. My question is does the family have any ground to stand on? Lord knows the hoops I have to jump though in the Medicare field to make sure a beneficiary knows what he/she is getting. Does an agent/company typically place a recorded call out to beneficiary after sending in something like this to make sure they know what they're getting? Etc.?
He did have a smaller whole life policy, however, it appears both beneficiaries on the policy have passed away. The insurance company has asked for a death certificate for the beneficiaries, but what happens after that?
Thanks for any information you can pass along. Poor guy only took these out so the family could afford to take him to Illinois to be buried next to his mother, and they don't have the money. Just trying show some compassion.

As far as question #1 goes, you can always call the insurance company and ask but it's my guess that everything they received fully disclosed it was an accident only policy.

In regards to the second question, if all beneficiaries have died, it'll go to the estate of the insured and subject to any claims against the estate first.

 

[Baseball7]

I see this happen ALL the time in FE. Nobody has what they say they have, sad but true.

 

[Newby]

Accidental companies sell by impulse buying. Mail order, add on to credit card, bank or credit union, etc.

They disclose everything enough to be legal but not to the point that the buyer would actually become aware he just bought lottery tickets instead of life insurance.

If both beneficiaries are proven dead the benefit is paid to their estate. Which forces the family to open probate and a formal estate settlement.

 

[Baseball7]

In all fairness to the companies I've seen these policies say "this is NOT life insurance" or close to it.

 

[jjh]

Thanks for information everyone. His niece apparently helped him fill it out 'because she works at the court house and knows what's she's doing' with these kind of things. Folks who talk insurance without a license are my favorites.

 

[danerlavigne]

He is pretty much out of luck. That's why it's important to do reviews with people. When I'm booking appointments and they tell me they got something in the mail, there is no way I am letting them off the hook. Happens all the time.

 

[Baseball7]

His niece apparently helped him fill it out 'because she works at the court house and knows what's she's doing'.

That's usually the follow up. The other is the "day after" cancellation when "my daughter already has insurance on me." Always makes you wonder what the real story is.

In fact many times I wonder when these families find out they were wrong do they remeber the day that door to door guy tried to tell them?