Do Life Insurance Companies Actually Pay the Benefits? – Dr. David Mielke, Dean of the EMU College of Business
Life insurance premium payments take into consideration expected life span, health of the individuals especially life style choices, sex and other actuarial data. Did you know that they also calculate the number of people who will stop paying for the insurance thereby collecting for a period of time with little expectation that they will have to pay any benefit? However, there is now some concern that life insurance companies may not be using best efforts to pay benefits when people actually die. Several states are investigating some of America’s largest life insurers to determine whether or not they pay out on policies of deceased customers. The investigations could have big implications for consumers and state treasuries.