Help!!! Missed Payment

[Clr1991]

Here's an update: I talked to my grandma and my mom's HR lady at her work and got all the facts. My mom was "terminated" in May. My grandma went ahead and wrote a check for the next three months to cover my moms payments. The check bounced by $72. She put more money in her checkings and called a few days later and told them to run it back through, that she had transferred more money. She never heard anything after that or received a letter until the funeral home called and said they needed money. She has the phone records of when she called the company to tell them it can be paid. It was group life insurance but she never said who the company was. Any ideas?

 

[Josh]

The good news is you have more facts, unfortunately it sounds like there might not be any coverage. Group life usually terminates at the end of employment unless you do a conversion to an individual policy. Unless she took the conversion (which may have not even been an option), then there probably isn't coverage. That's one of the reasons why folks are encouraged to have their own policies vs group coverage.

 

[Clr1991]

The good news is you have more facts, unfortunately it sounds like there might not be any coverage. Group life usually terminates at the end of employment unless you do a conversion to an individual policy. Unless she took the conversion (which may have not even been an option), then there probably isn't coverage. That's one of the reasons why folks are encouraged to have their own policies vs group coverage.

I'm guessing she went to an individual policy because she was in the hospital at the end of June and the doctors gave her only a few days. Her HR lady sat down with all of us and told us how the insurance would work out and how much we'd be getting. I had just asked my grandma what type it was and she said the top of the paper said group. Now that may have been an old paper because she was officially terminated in May. I really appreciate how helpful everyone has been on here though. It's shown me that there's a lot of different stipulations for every policy lol.