Monday, October 30, 2017

Life Insurance Poser

So this afternoon, I'll be meeting with the widow of a long-time client to file a claim. Matt passed away last week after a brief battle with cancer. It's the worst part of my job, and the best. Complicating matters is the fact that we just re-did his insurance a year ago this past August, which means that the policy is still in the contestability period. I'm not really anticipating any issues, but it's just one more thing.

Still, it's a reminder that, as simple as life insurance can be, there are often exceptions.

Take this case, for example, to which we were alerted by FoIB Jeff M:

"Wife Accused of Killing Husband Can Sue Insurer That Froze Life Insurance Proceeds"

Seems that Mrs Bailey has been accused of murdering her (now late) husband, presumably to collect the $343,000+ in life insurance proceeds. Now, accusation ≠ convistion, but courts generally refrain from allowing the accused from profiting from their crime.

She was indicted, but that apparently wasn't enough to satisfy this court, which basically ordered Pru to pony up, ruling that the carrier could always come back later and pull it back if the widow is convicted.

Gee, I can see no possible way for that to go wrong.

Be interesting to see how this turns out.
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