If the company that I retired from has been sold, can the new owner change the amount of my life insurance policy?

Get Legal Help Today

 Secured with SHA-256 Encryption

If the company that I retired from has been sold, can the new owner change the amount of my life insurance policy?

I worked for a company for 35 year, then retired. I had a $55,000 life insurance policy from them. After I retired they sold the company to another company. This company has informed me that I now have a $20,000 policy. I never worked for the new company. Can they take what I earned from another company and take away over half of the policy I earned?

Asked on January 8, 2016 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you had a contract guarantying you a certain amount of life insurance, you could sue to enforce that contract. But without a contract, if they were just voluntarily providing life insurance for employees and were the ones paying the premuims, they could choose to provide a different or lesser amount--or even to cancel it entirely. Without a contract, they were not obligated to maintain it.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption