Corebridge Financial won't pay death benefit

[cheatedsister]

My parents purchased a $1000 whole life policy when my sister was born in 1957 from Franklin Life in Indiana. I have the premium booklet with every quarterly payment made for 20 years and “Final Payment” noted on the last entry. Franklin Life was purchased by American Brands in 1979, American General in 1995, AIG in 2001 and Corebridge in 2022. My sister passed in 2022. Corebridge Financial states they do not have a record of the policy number listed in the premium booklet thus will not pay on the policy. I have filed a complaint with the Indiana Insurance Commission and their response was that the policy could not be found.

It is my understanding that life insurance is a promise on a payment at death. I should not bear the burden of the paperwork not moving efficiently between four companies. Don’t they own the risk? How do I collect on the death benefit for my sister? Please help!

 

[Baseball7]

Do you have the policy?

 

[cheatedsister]

Thank you for responding. I only have the premium booklet. There are twenty years of quarterly payments made with the final entry, " Final Premium, 6/4/1977."

I have contacted the Indiana Insurance Commission. They replied that the insured was searched by name, date of birth, policy number and social security number. They said, "Typically, this is indicative that the policy was not acquired by the Company which would indicate the policy was inactive prior to acquisition."

My sister did not have the policy number nor the booklet when she left home in 1980.

 

[Baseball7]

It would be extremely helpful if there was a policy or policy number…

 

[cheatedsister]

I do have the policy number. It is written in the premium booklet. I submitted photos to the Indiana Insurance Commission and AIG of the booklet along with her death certificate and Letters of Independent Administration. I provided her name as it appeared on the policy, date of birth, date of death, and policy number in all my correspondence.

 

[DayTimer]

They replied that the insured was searched by name, date of birth, policy number and social security number. They said, "Typically, this is indicative that the policy was not acquired by the Company which would indicate the policy was inactive prior to acquisition."

If you have a payment booklet but not the policy itself, then it is possible the policy was surrendered for the cash value prior to Franklin Life being acquired by American brands. I have had several clients who have surrendered their policies for the existing cash value who were asked to return the original policy to the company as part of the surrender process.

 

[DHK]

"Final payment" certainly implies that the policy was paid-up, but we can't be sure. The policy may have lapsed and that was just the last payment sent to them?

 

[scagnt83]

The policy could have been cashed out. Or lapsed.

"Final Payment" does not necessarily mean paid up. It could mean dividends fully offset the premium so they stopped making payments. Then sometime over the 50 years since then, dividends stopped and premiums needed to start again.

Without a policy number, there is no way to know. But it is very rare in my experience that a policy just "falls through the cracks" in an acquisition.

 

[cheatedsister]

Thank you all for the advice! I will need to talk to my oldest sibling about the actual policy and dig through the boxes from my deceased parent's house. Your statements have brought up facts I did not consider. You certainly are a fantastic group!

 

[scagnt83]

Thank you all for the advice! I will need to talk to my oldest sibling about the actual policy and dig through the boxes from my deceased parent's house. Your statements have brought up facts I did not consider. You certainly are a fantastic group!

Your welcome.

One thing to consider, it was in their financial interest to keep the policy on the books. If they "forgot" to acquire a policy, that means they paid for an asset they did not receive. Even if no more premiums were being paid, the reserves (money put aside) for that policy was part of the purchase price paid for the block of policies bought.