I think I screwed up...and a reaffirmation question

[lulabelle]

We have never had extra life insurance - we used this as an opportunity to get all of our financial affairs in order and applied for a policy on my husband. At the time of our initial intake, they asked if we had ever filed bankruptcy - the answer at that time was no. Due to a mix up in the scheduling, my husband wasn't able to sign the application until AFTER we filed (3 days after). Since I was the one that answered all the questions, DH wasn't aware that the bankruptcy question was on the application and signed it as it was. Now several weeks later we have received notification that our policy is ready to be activated. Now I'm not sure what to do - let them know that we filed bankruptcy and the application is in error or let it ride? Advice?

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My reaffirmation question - do I just sit back and wait & see if my mortgage company and bank for my car loan send reaffirmation agreements? Our 341 was a week ago and we still haven't heard anything. I'm assuming that if they don't send one within the deadline that it's their problem and not ours? Our am I supposed to be requesting something?

[helpinfla]

Contestability

Almost all life insurance policies have a 2 year contestability clause. This means that if your husband dies within the next 2 years AND the life insurance company goes back and finds there was an error on the application then there could be a dispute that would need to be decided by the judge. If your husband dies after the 2 year contestability period then it doesn't matter what was on the application unless it was gross fraud like lying about medical conditions or age or whatnot.

It is your choice whether to take a gamble on him not dying in the next 2 years and not having to fight the insurance company. If it was me I would just fill out a new application and go about it the right way. The extra time it takes i small and there shouldn't be any appreciable difference in your premium.

As for the reaffirmation thing i dont know

[PrezBO]

I had something similar happen re: mortgage reaffirmation. BAC never sent me anything regarding reaffirmation. I was shocked to see our case discharged and closed so quickly, but after checking with BAC, they said their policy is as long as you make payments there is no need for reaffirmation. I checked three times, still have my balance on the mortgage, still owe the mortgage, still making payments.

Check with your mortgage company to be sure about your case.

[jdcat]

lulabelle our attorney told us we would have to contact our lender and request the reaffirmation agreement. I wasn't aware that it worked that way. I assumed that when the lender received notice of our bk that they would initiate the process. We haven't filed yet so I haven't had to contact them but as soon as we file I'll be calling them.

[lulabelle]

Almost all life insurance policies have a 2 year contestability clause. This means that if your husband dies within the next 2 years AND the life insurance company goes back and finds there was an error on the application then there could be a dispute that would need to be decided by the judge. If your husband dies after the 2 year contestability period then it doesn't matter what was on the application unless it was gross fraud like lying about medical conditions or age or whatnot.

It is your choice whether to take a gamble on him not dying in the next 2 years and not having to fight the insurance company. If it was me I would just fill out a new application and go about it the right way. The extra time it takes i small and there shouldn't be any appreciable difference in your premium.

As for the reaffirmation thing i dont know

Thank you - that's the way I was leaning. Might as well just come clean, because Heaven forbid anything would happen to him, I don't want to have to fight an insurance company.

Now I'm worried about the reaffirmation agreements. I was just assuming that it was on their end to send us one. Bummer - I'll have to contact our attorneys office on Monday.