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Misstated health question on life insurance application

I pre-planned my cremation with a funeral home, and a pre-planning counselor filled out all my paperwork and e-signed it for me, which was fine with me.

I told him at first I wanted to keep it under $1,500.00 and put it on my credit card which their brochure said they take. I also told him I has health problems and Sz which exclude me from life insurance.

He emailed me a proposed contract for $895.90 for a direct cremation which I accepted. He had problems getting the system to take my credit card. I suggested we wait until March 3rd when my SSDI check goes in, and I could pay cash.

He didn’t want to do that, so he finally set-up an insurance policy with monthly premiums. He only asked me if I had $15.45 in my checking, and I said yes. He then sent me an e-signed insurance application which I didn’t see until after he e-signed it for me.

On the application there are no health questions if you pay in-full, but two questions if you do monthly premiums. He answered “No” to if during the last five years had I been diagnosed or treated for specific medical conditions, when the answer should have been “Yes”.

I received the policy and they won’t contest it after two years except for non-payment of premiums. It didn’t exclude fraud. I went on and paid the policy in-full March 5th.

My sister was all bent out of shape over this, saying they won’t pay when I die because of the fraud. I just got a letter from the insurance company today stating my policy was paid-in-full with a death benefit of $900.40.

I’ve got an appointment with a lawyer Friday to consult over the phone about this for $49.00 because of my sister.

What do you think?

I’ve paid cash of $895.90 to the insurance company.

Ring them up and explain what happened. Get the mistake rectified as soon as possible. Your sister is probably right, and they won’t pay out.

1 Like

Thanks everhopeful.

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