My family is in a terrible place and I am at a loss as to how to fix this. Looonngg story trying to be made short, we have small family business - just my husband and his father. We had "key man" life insurance on father-in-law to protect our family and family business should anything happen to our family patriarch. While dealing with health emergencies of our oldest daughter, our life insurance lapsed due to nonpayment of premium. We were told by insurance company we could reinstate policy - just complete their reinstatement form and if approved, we would be good to go.
Father-in-law completed insurance reinstatement form answering questions the same as he had for our auto insurance and commercial building insurance that had also expired due to late payment of premium "no, nothing has changed since I was last insured with you, payment was just late due to family emergencies". (Our daughter was hospitalized 9 times within 2 1/2 years time period, going through the mail was very low priority as we tried to get a diagnosis for what was happening to her). Reinstatement was approved on all three insurance policies (three different companies). Letter from life insurance company confirming reinstatement and stating amount due and then the letter confirming payment received and that policy was reinstated mentioned nothing about this insurance company choosing to start two year deniability period again upon reinstatement. Four months later, my father-in-law passed away.
The life insurance company we depended on to be our safety net when we lost 50% of our workforce will not pay. As a family and small business owners we are going bankrupt. Our home is in foreclosure because we needed this safety net and were counting on when we no longer had our leader. Insurance company does not legally have to disclose deniability period which seems incredible to me. So, legally, we have been robbed by the very company we paid for 8 years to protect us.
Can anyone give me a suggestion as to how to handle this? I appreciate your thoughts, thank you