Can You Sue If the Deceased Had Life Insurance?
Is it still worthwhile pursuing a lawsuit if the person killed had excellent life insurance?
Absolutely.
Under the Family Law Act, the death of a close family member (if caused by another’s actions) can lead to a claim against that negligent person for the loss of “care, guidance and companionship” which you would have received by the deceased. Depending on your relationship, you may also have an additional claim for financial dependency.
While our insurance system is designed to avoid “double recovery” for a loss, this concept does not apply to life insurance policies. Under what is known as the “private insurance exception”, life insurance policies, either purchased privately or as part of your employment benefits, do not reduce the damages owed to you as a result of a legal action against a negligent party.
Therefore, the entirety of the life insurance proceeds remain in your hands and do not reduce any of the compensation owed to you by the other driver’s insurance company.
