Illinois woman waited 80 days for her late father’s life insurance after a cyberattack — but the insurer kept charging him

“It basically informed you that they were going through a cyberattack, and that they don’t have access to any records, and there’s no one that you can talk to,” she told the news outlet.

And despite the delays, McWoods said the company continued withdrawing insurance premiums from her father’s account after his death.

“This does not feel right. It doesn’t seem legal,” she said.

The cost of saying goodbye

There’s no easy way to say goodbye to someone you love. And when you’re already trying to make sense of life without them, the last thing you want to worry about is how much that goodbye is going to cost.

According to the National Funeral Directors Association, the median cost of a funeral with viewing and burial was $8,300 in 2023, compared to $6,280 for a funeral with viewing and cremation.

McWoods first contacted TruStage on July 25, but said she didn’t receive a claim number until Oct. 1. More than 80 days after initially reaching out, she was still waiting for the money.

Mark Friedlander, a spokesperson for the Insurance Information Institute, told CBS News Chicago that insurers in Illinois generally have 15 business days to acknowledge a claim.

“It’s possible these extenuating circumstances are allowed by the state regulator,” Friedlander told the outlet. However, he said a cybersecurity attack is not typically a reason for a delay.

Within two days of CBS News Chicago reaching out to TruStage, McWoods said the company called to tell her a check would be mailed within two business days. TruStage also said it would refund the insurance premiums taken from her father’s account after he died.

In a statement to Moneywise, TruStage said that McWoods’ claim was already being processed when CBS News Chicago first contacted the company and has since been resolved. The insurer declined to discuss further details of her individual case, citing privacy concerns.

“A recent cyberattack significantly disrupted our digital systems, impacting our normal ability to process claims and communicate with customers,” the company told Moneywise. “In some cases, this incident has caused delays and gaps in the updates that customers expect, and we understand the frustration it has caused.”

What can you do if your life insurance payout is delayed?

McWoods isn’t the only TruStage customer to raise concerns. According to CBS News Chicago, the Illinois Department of Insurance received 14 consumer complaints related to the company’s handling of claims since July 11.

The department also confirmed that it had not granted TruStage any extensions to existing insurance requirements because of the cyberattack. Under Illinois law (215 ILCS 5/224), insurance companies generally have two months to pay a life insurance claim after receiving proof of death. If the payment is delayed, the family may also be entitled to interest on the money they’re owed.