Answer: The insurance paperwork should have provided clear instructions, giving you a choice of getting a check, or opening an account with them. We reviewed your forms and found them broad and confusing. When we spoke to a company representative we were candidly told, the company did not want to lose the portfolio money. To prevent this loss, the company offers no method for a direct payment of funds.
The company requires your life insurance funds be deposited into a newly created account with their company. This account appears harmless, but carries limitations on withdrawals. I personally find it insulting, so I complained. I was instructed to “write in the margin” of your claim form, your desire for “payment by check”.
The life insurance company is a major national company, whose building stands high above the Boston skyline. I hope they read this column to hear how distasteful their claims procedure is, and how much undue stress it causes.
Attorney James Haroutunian practices real estate law, estate planning and probate at 630 Boston Road, Billerica, MA. He gladly invites questions at email@example.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com. This column is published for entertainment purposes only and not to be relied on as legal advice, in any manner.