Insurance

[JimWhite]

I have had term life insurance (not through my employer) for more than a decade. I have been paying the premiums without lapses and the policy is currently valid. I am 54 and have been diagnosed with ALS. Will my insurer cancel my policy because I have this fatal condition? Are there clauses in the policy that I need to look for to see if my policy will pay when I die?

Thanks,
Jim

 

[GlenBrittle]

Its best to check with that company. Look in your latest printout of the policy.

I am thinking that when you signed up , you were healthy , and that will be the answer.

Glen

 

[BarryG]

Jim, the only way that they could justify cancelling your policy or not paying death benefits is if you died because of a pre-existing condition. As Glen said, read the fine print on your policy and check with the company.

 

[brooksea]

Get that policy out and read every bit of it! They can't cancel if you didn't have symptoms of ALS when you bought the policy, as far as I know. But you will want to familiarize yourself with the benefits anyway, so you can make sure they are paying you the proper payout. Disability companies do not want to pay you.

By the way, sorry you even have to be thinking about this!

 

[halfin]

Jim, wecome. I am in a similar situation, I am 53 and recently diagnosed. I have been going through some of these same exercises.

I would certainly expect your insurance to pay out in your situation. This is exactly what you have paid for, to have protection in case of conditions like this. Still you should look at the policy, check the fine print. One thing I learned is that my insurance company has the right to request an autopsy, which I'm not too happy about. On the positive side, it turns out that my policy, like many, allows for a certain amount of the value to be paid out in advance if you get a doctor's determination that you have less than a year to live. This could really help with expenses for that last year. (And you're not obligated to drop dead when 365 days are up either.) I hope your policy contains good news like that.

And congratulations on having the foresight to get coverage, a lot of guys our age don't have it. I have to admit that I only have insurance because my employer offers it automatically and pays the premiums, so it's free. I lucked out in that regard.

 

[Zaphoon]

Regarding your life insurance policies:

I use to sell the stuff. Please read your policies (they are often full of surprises!).

If you developed ALS after the policy was written and were not in the process of diagnosis, there is no justification for the policy to be nullified. With term insurance,
you can usually renew the policy without answering any medical questions providing you are not increasing the coverage. When you do renew, you can expect the premiums to increase a bit because you are now in a different age bracket than before.

If you have a diagnosis of ALS, your policy may allow you to submit a claim for early benefit withdrawl against the face amount of the policy. My policy allows me to take up to 40% of the face amount early in such a case. I only have PLS so I do not qualify to take advantage of this benefit.

Usually, a note from the doctor is required to confirm the diagnosis. Some insurance companies may require a determination of 6 months left to live. You will just have to check.

Please read your policy and all riders included.

Zaphoon

 

[JimWhite]

Thanks so much for all your replies in such a short period of time. I joined the forum today and this was my first post. Wow! I am so glad that there is such a great support group to help.

I have had the policy for more than 10 years before I was diagnosed. I will read the policy and the riders carefully.

Thanks a bunch!
Jim