Life insurance claims can sometimes involve a lot of money, especially if the person insured was a big name. Unfortunately, this financial gain has even led to some tragic cases, like spousal murders. Some of the most talked-about claims have come from the heirs of famous people like Michael Jackson and Dale Earnhardt.
Michael Jackson
The world was stunned on June 25, 2009, when Michael Jackson, the legendary singer, passed away. At the time, his net worth was about $600 million. After his death, AEG LIVE, the company promoting his concerts, faced accusations from Lloyd’s of London (the insurer) for not revealing Jackson’s drug use and his questionable medical history. Lloyd’s wanted a Los Angeles court to cancel the $17.5 million life insurance policy that AEG had for Jackson’s concerts. It came out that his O2 Arena Residency cancellation due to his death might include a clause exempting Lloyd’s from paying if illegal drug use was involved.
The core of Lloyd’s lawsuit against AEG was that nobody disclosed Jackson was using Propofol, the drug thought to have caused his death at age 50. Because the legal issue wasn’t resolved, the insurance policy ended up being voided.
Dale Earnhardt
When NASCAR driver Dale Earnhardt tragically died in a race, his wife Teresa tried to claim his $3.7 million life insurance payout but was reportedly denied. According to an agreement with Richard Childress Racing, Teresa was supposed to receive up to $7 million from Earnhardt’s life insurance, provided by Omaha Insurance. However, when Teresa’s claim was denied, Richard Childress Racing had to take Omaha Insurance to court, carrying the financial burden themselves.
Heath Ledger
Heath Ledger’s life insurance policy was worth $10 million when he died in 2007. But because of the mysterious nature of his death—an accidental drug overdose—the insurance company hesitated to pay, suspecting it could have been a suicide. Another complication was that Ledger might not have disclosed his prescription drug use when applying for the policy.
Don Cornelius
Don Cornelius’ death resulted in his ex-wife getting the payout from his two life insurance policies. Their divorce settlement had stated she would receive $300,000 from his policies. Although his death was a suicide, she still got the full benefits since the policies had been active for more than two years before his death, according to SmartAsset.com.