by Guest » Wed Aug 24, 2011 05:50 pm
I have several previous employers with whom I had life insurance policies with while working for the company. I was laid off from 2 companies and left on my own from one company. My question is, if I paid for the policies via payroll deductions, but did not continue with the policies when I left the companies, am I entitled to the policy benefits in which I paid? If so, how do I contact them and how do I find out how to go about finding out who the Insurance companies were/are if the company no longer exists?
marinidiana@yahoo.com
marinidiana@yahoo.com
Posted: Thu Aug 25, 2011 03:23 am Post Subject:
My question is, if I paid for the policies via payroll deductions, but did not continue with the policies when I left the companies, am I entitled to the policy benefits in which I paid?
Typically... no. The coverage was in effect only during the time you were actually paying premium, like any insurance policy. With some life insurance policies, you can pay off the premium "early," so to speak, but I heavily doubt this was the case in your situation.
It was likely that since you were paying the premium via payroll deduction that the coverage ended when you left that employer. There's the possibility, depending on the plan and a host of other things, that you MAY have been offered a "conversion" policy upon leaving the employer. If you had one of those, you would know about it as you would still be paying premium.
In terms of the "benefits" associated with life insurance, if the coverage was term insurance, the only benefit is a death benefit payable to your beneficiaries. You aren't dead, so that benefit wasn't paid, obviously! :D
If the policy was permanent insurance, which is possible (but not likely), there is an extremely slim (really, really, really slim) chance that there may have been some cash value in the contract. That's so unlikely it's almost not worth mentioning, but...
The only way to find out would be to either (1) contact the employer to see if they have any records; (2) see if you have any records from payroll stubs or similar paperwork, or (3) if you possibly remember the names of the insurers who issued the coverage you can contact them.
As they say... "Good Luck on this one!"
InsTeacher 8)
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