My mother had a life insurance policy in which I was the beneficiary. I have submitted the claim and they want me to send them a copy of my mothers will in order to access her medical records. She died within 2 years of the claim and as a result are wanting to do a full investigation, They have received a copy of the Death Certificate stating the cause of death due to COPD. Its going into the 3rd month, how long should I give them to pay? and should I give them a copy of the Will? or would it be best to send a Demand Letter at this point?
The Life Insurance company is within its rights to do an investigation of the cause of death and see if it was a condition that was or should have been disclosed on the application for insurance. Have they made a written request for a copy of the Will? If not, you should ask them to provide a letter specifying why they are asking for a copy of the Will. It is not clear how a copy of the Will would help the insurance company obtain medical records, so it is not obvious why they want it. Get everything from the insurance company in writing. I doubt a demand letter would do any good. At this point, their investigation will have to run its course.
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A demand letter won't help, only a life insurance lawyer, so google life insurance lawyer to find one to resolve it.
It appears they are trying to find a way to deny the claim. I would talk to an attorney.
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Sorry for your loss. What the insurance company is doing is something commonly called retro-active underwriting. It is legal and they are within their rights to rev'w your mother's past medical records for any undisclosed "material" medical condition. They have this right because it appears your mother died within the two year contestability period. However, any undisclosed prior medical condition on the application still must have been material to the risk. This is a legal term of art and insurance companies sometimes try to over-extend the definition to avoid paying a claim. I'm not sure why they need a copy of her will to access medical records. Most of the time all they need is a copy of the death certificate. I've handled lots of life insurance claims and the only time I've seen this before is when the insurance company said the cause of death was suspicious and they wanted to know if my client was the primary beneficiary under the will as well as the life insurance policy. No sense sending them a demand letter at this point; however, you may want to send them a written request via mail, e-mail or fax asking for an explanation as to why they need a copy of the will. Also, it may be time to consult with a lawyer about this situation. Finally, I'm including a link to the a Life Insurance Claim Resource Ctr that may provide additional information.
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