FE Death Claim Not Paid

5pill

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after 11 months. Client made a couple payments and died.
Beneficiary has done due diligence. Co. tells me they are still just checking things.
Whats your experience? Have you seen one go this long? Longer?
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Eternity is way too long to be wrong.
 
after 11 months. Client made a couple payments and died.
Beneficiary has done due diligence. Co. tells me they are still just checking things.
Whats your experience? Have you seen one go this long? Longer?
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Eternity is way too long to be wrong.

Yes, it's very common for life insurance companies to take 4 or 5 months to decide if the death is within the first 2-years. This is not just with final expense policies but ALL life insurance companies.

A lot depends on the age of the person, whether there was an autopsy, how quickly they can gather medical records, etc.

The more heavily underwritten the policy was, the more they are going to research it. Also a large face amount (like with a term policy) they will be extra careful not to miss anything that would have caused the policy to be declined.

It is not common for a healthy person to die a natural death within two years of taking out a policy so they will definitely track the agent's business if there is more than one or two of these.

Some companies (Settlers Life being one of them) send a report each year of how many claims were denied when death occurs within two years. You want companies that keep that margin very small.
 
I have a feeling there is more to this story. If the company is not paying the claim on time, there must be more to the story. I bet the client died within the 1st 2 years and they want to go back and see if they can get out of paying it or catch the client in a lie.

It is a big red flag for a client to make a couple of payments and then die.
 
I have never seen one go more than a few months. 11 months is way outside of normal. I agree there is more to this story.

I had one where the baby (cld rdr) died. within two days of the app being written. The App was still on my desk when I got the call. The $20,000 claim was paid in about 60 - 90 days.

Which company is this?
 
I have a feeling there is more to this story. If the company is not paying the claim on time, there must be more to the story. I bet the client died within the 1st 2 years and they want to go back and see if they can get out of paying it or catch the client in a lie.

It is a big red flag for a client to make a couple of payments and then die.


I actually had this happen to me. A 1M DB and the client had only made 4 payments. The company paid the claim, but it took them almost 3 months to do so; which is understandable.

They also interviewed me, the agent of record, to make sure that I filled out everything correctly, and was truthful on the application.

OP, if you have any other questions feel free to ask.
 
Yep, I went thru an interview.
Its just seems like it has taken quite a while.
I would rather not disclose what co it is. There's bound to be good reason...I would think.
 
I've had three FE claims within the first year. The longest payment was ~60 days after DOD and that was due to a witch at the doctor's office.

Client had pulmonary issues and had some "other" health problems, but passed UW cleanly. She died of an impacted bowel and had NO previous symptoms prior to the month of death.


I'd get on the company for "timely payment of claims". What is the rule in your state? Go to bat for your client. It is your job.
 
"Originally posted by G.Gordon: I'd get on the company for "timely payment of claims". What is the rule in your state? Go to bat for your client. It is your job."

I think this is bigger than me. Not so sure its my job to enforce payment of a death claim. If it is, I may not want to continue in life insurance sales.

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Eternity is too long to be wrong.
 
"Originally posted by G.Gordon: I'd get on the company for "timely payment of claims". What is the rule in your state? Go to bat for your client. It is your job."

I think this is bigger than me. Not so sure its my job to enforce payment of a death claim. If it is, I may not want to continue in life insurance sales.

__________________________________________________________________________________
Eternity is too long to be wrong.

What was suggested is a good idea.

Going to bat is the least you do, I would try and follow up with the company phone call every week till its paid.
Just ask for a status and ask what you can do to expidite.

Im sure you told her how great the company is and how great your service is, so now its time to back that up, sorry if you dont like it but it is part of the job its called WORK.
 
What was suggested is a good idea.

Going to bat is the least you do, I would try and follow up with the company phone call every week till its paid.
Just ask for a status and ask what you can do to expidite.

Im sure you told her how great the company is and how great your service is, so now its time to back that up, sorry if you dont like it but it is part of the job its called WORK.

I never said anything about liking it or not liking it. I do believe I mentioned that I have been checking status on the claim.
Forcing a life insurance company to pay a death claim is NOT what I will attempt to do. If YOU want to pursue that line of work, knock your lights out.
Thanks for reminding me what work is. Now, I have a better understanding of how to support myself..

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Eternity is way too long to be wrong.
 

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