Legal Question in Insurance Law in Florida

Life Insurance after Layoff

I worked for Watkins Motor Lines, Inc. for 17 years. FedEx bought the company one year ago. Two weeks ago, I was laid off with no warning. Reengineering was the reason. All of my benefits ended at midnight that same day.

I have paid for Life Insurance for 18 years and now find out that I will not be able to keep it. I can only apply for new insurance through another company throught FedEx. This will cost me over $8,000 a year to continue the coverage I have had all of these years.

I do not understand why I cannot continue paying for the Life Insurance that I have paid for in the last 18 years. This means that I have paid thousands of dollars for nothing.

Can anything be done or have I lost my investment in the life insurance premiums that I have paid?


Asked on 10/22/07, 4:59 pm

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: Life Insurance after Layoff

If you have been paying for whole life insurance -- which is life insurance PLUS an investment -- then your "investment" portion is still yours. If you bought only term insurance, then you have lost nothing, since term coverage is only "good" if you die during the coverage year.

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Answered on 10/22/07, 8:01 pm


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