Despite 18 Years Of Life Insurance Premiums, Cigna Refused To Pay Widow

Despite 18 Years Of Life Insurance Premiums, Cigna Refused To Pay Widow

Two decades ago, a man in New Jersey had a job that included a life insurance benefit. When he left that job, he was able to keep that policy if he continued to pay all the premiums on his own, which he did for 18 years. So why did the insurance company refuse to pay this man’s widow after he passed away? Hint: It rhymes with stupidity. [More]

15 Things You Need To Know About Life Insurance

15 Things You Need To Know About Life Insurance

This is the third post in a multipart “How To Not Suck…” series on insurance. Previous installments looked at auto insurance and homeowner’s coverage. Future posts will look at long-term care, and disability insurance.

If you make it through your house burning down and that car accident, you might think you’ve got a the nine lives of a cat. But those nine lives will run out eventually, so you had better learn how to not suck… at picking a life insurance policy. [More]

(frankieleon)

Lawyer Insists He’s Innocent Of Death Profiteering And Identity Theft, Wants New Trial

Hey, remember the Rhode Island lawyer who was charged with wire fraud and identity theft for using strangers’ deaths as an investment vehicle? As his sentencing date approaches, he’s filed papers to rescind his guilty plea and request a new trial. His guilty plea came with a maximum sentence of ten years in prison, but he maintains his innocence. [More]

(frankieleon)

Lawyer Who Took Out Annuities On The Dying Pleads Guilty 1 Week Into Trial

Depending on your point of view, Joseph Caramadre of Cranston, R.I. is either an opportunist who scammed the terminally ill, or a great philanthropist who found a win-win loophole and made last few months of the dying easier and more comfortable. The federal prosecutors who charged him with wire and mail fraud leaned toward the former. [More]

We’re All Gonna Die, Might As Well Make Some Money Off It

We’re All Gonna Die, Might As Well Make Some Money Off It

Imagine that you, your spouse, or a beloved relative is terminally ill. A man approaches you and asks whether your family would be interested in a little proposition. Your relative would need to provide their name, Social Security number, and a signature or two. In return, they would receive a few thousand dollars. Sounds like an identity theft scheme, doesn’t it? Only it was all perfectly legal. No families were swindled, no fake credit cards were opened. The lawyer behind this scheme was taking advantage of a loophole in the rules of a specific type of life insurance product, variable annuities. Investors used a system intended to protect a large nest egg for future generations to profit without having to die. [More]

What To Keep In Mind When Switching Life Insurance Policies

What To Keep In Mind When Switching Life Insurance Policies

If you have life insurance but want to switch to a more attractive policy, you could defeat the purpose of coverage by moving too quickly. Experts recommend proceeding carefully in order to make sure you don’t go uninsured while waiting for the new policy to kick in. [More]

Determining The Right Amount Of Life Insurance

Determining The Right Amount Of Life Insurance

If you rely on someone else’s income or financially support others, the decision of whether or not to buy life insurance is easy. Determining the right amount to buy is far more difficult, requiring an alchemy of guesswork involving lost income, projected expenses and life expectancy. [More]

Weighing Term Life Insurance Against Whole Life

Weighing Term Life Insurance Against Whole Life

When it comes time to buy life insurance, you’re faced with a difficult choice. Do you buy low-cost term life insurance that retains no cash value or spring for the more expensive whole life option that doubles as something like a savings account? [More]

Why Does The Government Hate War Widows?

Why Does The Government Hate War Widows?

Over 50,000 war widows whose late spouses paid for insurance to help support their families in the case they lost their life now find themselves unable to receive the entire benefit of the insurance — that is unless they remarry… but not until after they turn 57. [More]

How Not To Save Money On Life Insurance

How Not To Save Money On Life Insurance

In Bizarro World, most of us with life insurance feel guilty for paying so little to insurance companies. Budget Life checks in with several ways to allay those feelings of inadequacy by offering some things you can do to fatten up those premiums: [More]

Life Insurance Myths Debunked

Life Insurance Myths Debunked

Canadian finance blog Financial Highway is running a a financial mythbuster series, and the latest entry tackles life insurance. [More]

What Happens When Your Life Insurer Kicks The Bucket?

What Happens When Your Life Insurer Kicks The Bucket?

Life insurance polices are backed by state guarantee associations, but the coverage offered varies drastically from state to state. Some products, like variable annuities, can be recovered in full because of the way they’re structured, but if you have term life insurance or a universal policy, you should know the limitations of your state’s coverage…

Banks Use Life Insurance Policies To Fund Executive Bonuses

Banks Use Life Insurance Policies To Fund Executive Bonuses

Here’s a morbid bit of creative accounting, courtesy of the Wall Street Journal: if you work for Bank of America, J.P. Morgan Chase, or Wells Fargo, your employer may have taken out a life insurance policy on you.

Settlers Life Insurance Denies Claim For Widow Of Gunshot Victim Due To Pre-Existing Medical Condition

Settlers Life Insurance Denies Claim For Widow Of Gunshot Victim Due To Pre-Existing Medical Condition

At Settlers Life Insurance, being shot in the back by unknown assailants is trumped by Hepatitis C, and they won’t pay your benefits. According to the lawsuit filed last week (pdf), Curtis McCraw held a life insurance policy with Settlers Life Insurance at the time of his murder in April 2008. When his wife Stephanie McCraw attempted to claim the Accidental Death Benefit, Settlers denied her claim because her husband had “a pre-existing liver condition.” We knew Hepatitis was bad, but we didn’t know it could pull out a gun and shoot you. We wonder if Hepatitis C is what really killed Kennedy.

I Am Going To Kick Your Ass Unless You Get Life Insurance

I Am Going To Kick Your Ass Unless You Get Life Insurance

The expression on the little guy’s face in this banner ad seems say, “I’m gonna kick your ass unless you get some freakin’ life insurance.” Maybe even throw in a “sucker” at the end there. Seriously, what’s his deal? He’s sooo angry!

Personal Finance Roundup

Personal Finance Roundup

When should you spend to save? [MSN Money] “Are warehouse store memberships a good deal? How about extended warranties? It all depends on the products — and on you, the shopper.”

Spherion Corp. Steals $426,000 From Widow

Spherion Corp. Steals $426,000 From Widow

Thomas Amschwand knew he was dying and did everything in his power to make sure his wife would be able to collect his $426,000 life insurance policy. Yet when the 30-year-old succumbed to heart cancer, his employer, Spherion, a temporary staffing company, told his widow Melissa that she would receive nothing.

Walmart Took Secret Life Insurance Policies Out On Employees, Collected After Their Death

Walmart Took Secret Life Insurance Policies Out On Employees, Collected After Their Death

Armatrout was one of about 350,000 employees Wal-Mart secretly insured nationwide, said Texas attorney Michael D. Myers, who estimated the company collected on 75 to 100 policies involving Florida employees who died.