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Journeyred Asked August 2016

Can anything be done to reinstate his life insurance?

On aug 2 my friend cancelled his life insurance with any family members knowing 7 days later he passed. Can anything be done to reinstate the insurance? I think he had dementia.

Llamalover47 Sep 2016
You should contact an elder law attorney. Explain to the lawyer that your husband wasn't in his right mind when he made the life insurance decision. Also point out the 7-day timeframe. Push or at least attempt to "not to take no for an answer," e.g. work with the attorney.

Terry512 Sep 2016
Call an elder care attorney right away because if the person was not deceased, the insurance company would probably say there is a "grace period" for the payment and If it was paid immediately, they would re-instate it but due to the fact that the policy holder cancelled it and then passed soon after, they will know they would be liable to pay and would probably tell you there is nothing they can do. An attorney can help you especially if you have a doctor attesting to the fact that he did have dementia.

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Terry512 Sep 2016
I read an article recently that wasn't very kind to the insurance industry; it was about paying out their policies when holders pass away. In it, it said that it is standard in the insurance business for the policy holder to be the one to contact the company about a payment due. If it is the holder itself that passes, then it is the place of the surviving spouse to contact them regarding the policy. If the family sits around and assuming the ins. company will just send a check, it will not come. In some places, the death certificate will be sent to the insurance company (the article said) but if someone does not call about it, they will hold payment until such time as someone does call and if they don't, the money will go back into their general fund as if the deceased did not have any insurance at all. Apparently, the writer of the article did some fact checking and it was confirmed that no money is paid out unless a person called and set up an appointment to talk with them about the policy and payment. Even though they knew a person has paid in for years on a policy and thought the surviving family members are being cared for by the monies left over from the policy, they (ins.co.) do not feel they have an obligation to notify anyone in the family just because they received a death certificate' so they won't pay anything unless contacted. I don't agree with that personally but I wasn't surprised to hear it about the insurance industry. Can anyone from the insurance industry refute this or agree with it? I just assumed the writer knew what he was talking about.

Llamalover47 Aug 2016
My daughter's FIL did this and caused havoc for her MIL.

staceyb Aug 2016
There may be a grace period, I'd recommend checking this out, and if possible, with the help of his lawyer, if he had one.
So sorry for your loss!

brandywine1949 Aug 2016
Yes, this is a support group.

JoAnn29 Aug 2016
Tooyoung, I think this was a nasty response. Its not up to us to judge, just to help from our experiences.

TooYoungForThis Aug 2016
Why do I think "your friend" is not just "your friend", and "any family members" is you? There is much more to your question than what's on its face.

The reason I say this is that it is now August 12th. He died on August 9th, and canceled his life insurance on August 2nd. Three days after his death, and his family would most likely be dealing with the funeral home, wake & funeral---that takes up at least 2-3 days. How would you know, as his "friend", 3 days after his death whether or not he canceled his life insurance policy? And if he was your "friend", why do you "think" he had dementia and not KNOW FOR A FACT THAT HE HAD DEMENTIA? And why would you be asking ask a bunch of people you don't know whether or not anything can be done to reinstate the insurance policy? If his "family members" wanted to know if anything could be done to reinstate of policy, they can call the insurance company & find out what the rules are. Unless you are the beneficiary, it's none of your business what his "family members" do.

There's something very fishy with your question, in my humble opinion. Unless you are the beneficiary of the policy, mind your own business.

mlface Aug 2016
My friend canceled then few days later called to say she still wanted it & they said she was ok cause was certain amt of grace period.

TorieJ Aug 2016
There are several questions that need answers. How do you know that he cancelled his insurance? Did someone contact the insurance company and the company said that he had cancelled? How did he do this? Did he stop paying? Did he write and say "cancel". Did he go through an agent? Did he give an effective date, since many policies are paid in advance.

What type of life insurance did he have? Was it group or individual? Individual term, group term (union, association, pension, etc.) whole life, universal life, or what?

Once you know that you will know the best person to contact at the issuing organization.

Are you the beneficiary? Does the man have a will or trust? If an attorney is involved perhaps that office can assist you.

IMO, if you are not a beneficiary, or responsible for any remaining bills, you do not have standing in this situation.

FedUpNow Aug 2016
My husband did this to me along with household insurance.

Sunnygirl1 Aug 2016
I would consult with an attorney immediately. Lots of things to look into, including his capacity, if it was paid up, etc.

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