Insurance company finally pays up after widow waits months for c - KMOV.com

Insurance company finally pays up after widow waits months for closure

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Credit: KMOV Credit: KMOV

ST. LOUIS (KMOV.com)  A St. Louis mother contacted News 4 when she was unable to collect payment on her late husband's life insurance policy, months after his death from pancreatic cancer.

Her husband died in 2015.  He was in his thirties.

His widow, Roseline, told News 4 how her husband had purchased the life insurance policy after the birth of their second child.

"His father died at an early age from a heart attack," she said.

She says he told her,  "Let me get life insurance to make sure my family is ok."

Every month for years the family paid 32 dollars for the policy.

In late 2013 the policy lapsed briefly, but was quickly reinstated in January 2014, more than a year before the cancer diagnosis.

When he died American Family Insurance released 15 thousand dollars to cover funeral expenses.

But the company held back the majority of the $100,000 policy, or $85,000.

In August, she received a letter stating there would be a delay while American Family conducted a routine contestable claim investigation.

In December, Roseline contacted News 4, saying she needed the money, and had no answers, and no timeline for when it would be paid, if ever.

"It's hard enough to make that call," she said, "That I don't have my husband anymore. He's passed away. I explained I'm 32. my husband's passed away. As devastating as it is to say my best friend is gone now I have to go through this. It makes no sense to me."

News 4 spoke with Chris Kline of the Missouri Department of Insurance.  Kline says the delay is because of what is called the "contestability period."

Kline tells News 4 insurance providers have up to two years to pay out.

He tells us that last year the agency received more than 4000 insurance related complaints, more than 400 involved life insurance policies.

After News 4 reached out to American Family, the insurance company reacted quickly, and within a short time, Roseline was paid the full amount she was owed.

American Family did not provide an official response to News 4.

Link to Missouri Department of Insurance:  http://insurance.mo.gov/

Link to Illinois Department of Insurance:  http://insurance2.illinois.gov/

Copyright 2016 KMOV (Meredith Corporation). All rights reserved. 

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