Life Insurance

Hi,

My elderly father purchased a small $10,000.00 accidental death insurance policy from a Life Insurance Company.  The company delayed payment for 4 months while they determined that he actually did die as a result of a fall.  When they finally sent the payment, it was for $2,500.00, not $10,000.00.  The explanation was that the amount was reduced because he was older than 70 when he died.  My issue is that he was older than 70 when he purchased the policy.  He purchased and paid for a $10,00.00 policy, not a $2,500.00.  Is what they did legal?  Also, are they not supposed to pay interest when they delay payment?  One other bit of information that may or may not be relevant, he purchased the policy through a local bank.  Do they have any role in ensuring that Monumental acts ethically?

Thank you for you assistance.

Sincerely,

L

Dear L:

Thank you for your question.  The facts you provide sure make it sound like something fishy is going on.  Review of the insurance contract is the first place I would go as a lawyer.  You may also consider filing a complaint with the State of Michigan since the State regulates insurances companies that write policies inside the State.  The State agency with that authority is the Office of Financial and Insurance Regulation.  Information about the complaint process can be found on the web by clicking here.

I recommend that you also consider discussing this matter with a bank representative as well who may be able to help. Good luck and please let me know what happens.
All my best.
Sandy

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