Life Insurance Death Benefits Denied?
Question by Jim: Life insurance death benefits denied?
Life insurance ??? My sister mentally and physically disabled purchased a life insurance policy. After 3-4 months of payments she died suddenly of Stage 4 liver cancer. Her policy denied her benefits because she “lied” about having COPD. I took care of her finances and I was the emergency contact for her. She always told her family and friends that she had chronic bronchitis but her medical records have it down as COPD. My question is how can a mentally and physically disable person get life insurance and answer the questions “to the best of their knowledge” and then the benefits be denied?. Her primary doctors English is/was difficult to understand and if he told her chronic obstructive pulmonary disease it is very likely she had no idea what it meant. If she inquired I believe it would be easier for him to explain it as chronic bronchitis. The question on the application ” To the best of your knowledge have you even been diagnosed with Parkinson’s, Chronic Obstructive Pulmonary Disease and a couple of others” she answered no. Does this sound like the benefits should be denied. Its been almost a year since her death which I am still paying for her funeral.
I suppose I should have been clearer. An agent came to my sister’s apartment (government housing for people with physical and mental disabilities). Anyone sitting in a room with her for five minutes could tell that she had difficulties comprehending (her mental disability) she needed a lot of explanations and people needed to repeat things to her. She did not purchase insurance because she was sick. She thought she would be helping her family by not leaving debt for her funeral behind when the time came. Her death was quite the surprise to all of us. She went to the emergency with abdominal pain a week before Christmas, then on Jan 14 she returned to the emergency for abdominal pain, was admitted, diagnosed with Stage 4 Adenocarcinoma that metastasized in her liver on Jan. 20 and died Jan. 24. Our family did not know about the policy until after her death. My thoughts were she answered to the best of “her” knowledge not lied which btw is something one does on purpose to be de
Top answer:
Answer by Common Sense
Yes. Benefits should not have been paid on this for multiple reasons.
1. Your sister was not competent to sign.
2. She mis-stated on the application.
I’m sorry about her death but no insurance company would pay that claim.
What do you think? Leave you answer below!
