Help! What happens if someone dies before first insurance payment was made?

Buddy2000uk

This is a very serious question, because it's true.
My wife and I took out a joint life insurance policy some time ago.
However, 5 days after the policy was signed and prior to the first payment being processed - she was killed in a car accident.
The insurance company refused to pay out because there was no initial monthly premium paid. Does anyone have any knowledge of the legality of this, and if they should have paid out on the policy? Until now, I just accepted it, but I'm starting to question if i have been told a pack of lies? Any help would be appreciated. Thank you in advance.

Newly_retired

Sorry for your loss, though you say this was some time ago.
Do you not have a copy of the terms and conditions of the contract?
It seems highly unlikely that the company would pay out as you had not made any payment at all, so you have not really entered into a contract. Sorry it is not what you wanted to hear.
Some policies would not pay out until a certain period of time has passed, it all depends on the wording.

relaxtwotribes

Contractually the insurance company might be correct, due to not all of the conditions precedent having been met, but I have heard of cases in the past in which an insurance company did pay out under similar circumstances.
Try elevating your claim to Chief Executive level.

BTW, when you say 'joint' policy, does that mean it would only pay out on the second death?

jimbo6977

No payment = no Consideration = no Contract.

But this is the sort of case that might pique the interest of eg Anna Tims at the Guardian or Katie Morley at the Telegraph.

Dox

jimbo6977 wrote: »

No payment = no Consideration = no Contract.

Depends entirely on the wording of the contract. It is likely to have said something along the lines of 'this policy will incept immediately after payment of the first premium' or words to that effect. The only way to be sure is to look at the actual contract. How long ago did you take out the policy?

As for being a joint life policy - joint life insurance covers two people, but pays out just once, usually to the survivor after the first person dies while the policy is in force. The survivor has no further life cover under the same policy.