Mortgage Clearance & Suicide

Dempo1

This is a delicate question and i hope the correct forum.

A close friend lost his wife recently due to suicide, long tragic history of depression and alcoholism. As a couple the re mortgaged their home about 5 years ago, my friend was only required to take a medical and assumed his life was the primary concern for policy considerations.

The coroners report has just been completed and the verdict confirms the circumstances surrounding his wifes death.

The Insurance company decided to stop taking premium payments on receiving notification via death cert and my friend assumed it would just be a matter of paperwork to finalize clearance of outstanding mortgage based on death benefit.

Now the insurance company have written to the family doctor seeking details on medical history of the wife. Its been a traumatic time for my friend and his family.

I just wanted to ask anyone out there who may know how the insurance system works, is this usual for Insurance companies to dispute paying out on death benefit. I understood suicide can only null an void a policy if it occurred within two years of said policy being taken out. I don't have the full details of the policy, just trying to find out as much info as possible.

Appreciation in advance of any honest advice or perhaps experiences with such an appalling situation.

Toots

That's a really horrible situation, my condolences to you and your friend. I would imagine that they may be looking for medical history to verify whether or not your friend's wife had any history of depression. If she had, then this would have needed to be declared to the life assurance company when the policy was taken out. This is only my guess though. There are others on this board who would be very familiar with these systems and could provide further information.

Henry Ford III

Dempo1 wrote: »

This is a delicate question and i hope the correct forum.

A close friend lost his wife recently due to suicide, long tragic history of depression and alcoholism. As a couple the re mortgaged their home about 5 years ago, my friend was only required to take a medical and assumed his life was the primary concern for policy considerations.

The coroners report has just been completed and the verdict confirms the circumstances surrounding his wifes death.

The Insurance company decided to stop taking premium payments on receiving notification via death cert and my friend assumed it would just be a matter of paperwork to finalize clearance of outstanding mortgage based on death benefit.

Now the insurance company have written to the family doctor seeking details on medical history of the wife. Its been a traumatic time for my friend and his family.

I just wanted to ask anyone out there who may know how the insurance system works, is this usual for Insurance companies to dispute paying out on death benefit. I understood suicide can only null an void a policy if it occurred within two years of said policy being taken out. I don't have the full details of the policy, just trying to find out as much info as possible.

Appreciation in advance of any honest advice or perhaps experiences with such an appalling situation.

Nasty situation ok.

I wonder was the deceased insured at all? If so was her tragic history properly disclosed and underwritten?

The insurer can and will refuse to pay a claim if any "material" fact at the time of the proposal was undisclosed.

broker2008

Speaking in general rather than policy specific terms:

Once Insurance company is notified of the death, this is noted on the companys records and claims process begins. Correspondence is usually via broker, bank, executor or solicitor.

It would be normal for the claims department to initially write out to the GP for an uptodate report (PMA report) at the company's expense. The type of questions asked on this report would include: how long they have known the patient, whether habits were moderate, history of illnesses etc.

On receipt of this report, the underwriters will assess the claim along with the PMA report received when the policy was originally taken out (if there was one), and the report from a medical examination at the time of the policy been taken out (if there was one).

If anything else came up on assessing these documents eg that he/she had visited other medical personnel, they too would be written out to.

Some doctors take longer than others to reply, especially if there is a death claim.

If all material facts were disclosed at proposal form stage and there was no non disclosure or other issues, the claim could be paid out.

If material facts were not disclosed, there might be no payout.

Dempo1

Thank you everyone so far. It is indeed a terrible situation and any advice is appreciated. Whilst i don't know the full fact of the policy (would rather not ask) I do understand from my friend that on re mortgaging five years ago whilst both where named on the Policy, the focus was on him, i guess being the bread earner as such. He did a full medical etc but his wife was not requested or required to do a medical.

Interesting observations so far and i appreciate them.

axel rose

My condolences to you and your friend. broker pretty much stated the facts as they are.

I have recently been through the same thing-claiming on a mortgage policy. Lets just say that the insurance company went out of their way to make the whole process as painful and as distressing as possible. They automatically want to find a way out of paying out.

My advice is for your friend to keep on top of what is been requested, if they want specific reports from a particlar doctor, contact the doctor and ensure that it has been sent off, then contact the ins company and ensure that they received it.

In my case the company wanted a report from every single doctor that my husband saw since he was born!!!!!!

The insurance information information service were also very supportive www.iif.ie


best of luck

Dempo1

axel rose wrote: »

My condolences to you and your friend. broker pretty much stated the facts as they are.

I have recently been through the same thing-claiming on a mortgage policy. Lets just say that the insurance company went out of their way to make the whole process as painful and as distressing as possible. They automatically want to find a way out of paying out.

My advice is for your friend to keep on top of what is been requested, if they want specific reports from a particlar doctor, contact the doctor and ensure that it has been sent off, then contact the ins company and ensure that they received it.

In my case the company wanted a report from every single doctor that my husband saw since he was born!!!!!!

The insurance information information service were also very supportive www.iif.ie


best of luck

I sincerly appreciate your kind words. I am collating as much info as possible for my friend and i appreciate you sharing your experience which i can appreciate was very difficult.