Can You Cancel A Life Insurance Policy Over The Phone?
Posted July 6, 2009 – 4:32 am in: structured settlements FAQMy mother in law past away suddenly three years ago. We found out through the executor of the will, (brother in law ) that there was a life insurance policy that was never mentioned. When we questioned him on it. He said it was payable to one child of the four (my husband) but it was never mentioned because he said the policy was canceled over the phone. I was told by a lawyer that policy can only be canceled in writing or it can lapse for non payment. Is there a standard that is upheld for life insurance cancellations?
Tags: Cancel, Insurance, Life, Over, Phone, Policy
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No Insurer (Life Insurance Company) is going to cancel a life insurance policy over the phone. Even if the state insurance laws did not exist, the company could be dealing with an unauthorized person and would be held liable in a lawsuit. A witnessed signature is required in order to cover their “assets.”
The Premium Payer, however, may be able by telephone to stop automatic premium payments (such as those made by monthly check draft). This would ultimately result in the lapse of the policy. Yet in that case, before the policy lapsed the Insurer would send notices by mail to the last address of record for the Owner of the policy (who is not necessarily the Insured). If the Owner had moved and had not updated their address with the Insurer, the policy could lapse due to no fault of the insurance company.
In my experience as a life insurance agent, canceling a policy must be completed in writing; some companies require a signature guarantee.
If the policy premiums are not paid the policy could lapse, which would have similar results – no death benefit.
The beneficiary should contact the company directly to ask about the existence of a policy and it’s status. You may need to provide a death certificate to be given any information.
Most companies are going to require it in writing. The bottom line is the payments. When was it cancelled?….before or after she died? Naturally if it was being paid for there will be a money trail of premium payments.
To cancel a policy you need to only stop paying for it and it’ll cancel itself (for non payment). So, technically you can even if it was on an automatic payment, because you could switch it to an alternative billing mode and then stop paying.http://www.InsurancePIckle.com
I KNOW FROM EXPERIENCE, YOU CAN CANCEL A POLICY BY PHONE.
It Needs a signiture – Faxed or in Person.