Chicago man's life insurance payout stalled for months after cyberattack

A Chicago man's daughter has been left waiting for months for a life insurance payout after her father's death, after a cyberattack disrupted services at TruStage earlier this year.

When Stephanie McWoods lost her 64-year-old father in July, she said she expected to grieve, but not to have to fight.

"I imagined this experience being a lot smoother," she said.

McWoods anticipated the life insurance policy her father left behind would help her family through a difficult time and help pay to put him to rest. But when she called TruStage to start a claim on July 25, she only got an automated response.

"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 said.

She said she repeatedly submitted information and called for updates, but still couldn't get any answers about when her claim would be paid.

To make things worse, she said TruStage kept withdrawing premium payments after her dad died.

"This does not feel right. It doesn't seem legal," she said.

McWoods said she didn't get a claim number from TruStage until Oct. 1, and more than 80 days after first reaching out, she still hasn't gotten the funds from her dad's policy.

"It's possible these extenuating circumstances are allowed by the state regulator," said Mark Friedlander, spokesman for the Insurance Information Institute.

Friedlander said a cyberattack is not a typical reason for a life insurance death benefit to go unpaid.

He said, normally under Illinois regulations, an insurer has 15 business days to acknowledge the claim. In straightforward cases, insurers must pay claims within 30 to 60 days of receiving all necessary documents.

"It seems to be a broader problem, certainly," he said.

Friedlander said that's why the Illinois Department of Insurance needs to step in to investigate.

TruStage acknowledged that claims processing has been impacted by the cyberattack, and apologized for the frustration it has caused.

"A recent cyberattack significantly disrupted our digital systems, impacting our normal ability to process claims and communicate with customers," a TruStage spokesperson said. "In some cases, this incident has caused delays and gaps in the updates that customers expect, and we understand the frustration it has caused. We continue to expand servicing and claims capabilities as our recovery progresses, including expanding our customer service support team and creating new processes to help meet customer needs as fast as possible."

But within less than 48 hours of the CBS News Chicago Investigators reaching out, McWoods said she finally got the call she's been waiting for from TruStage, telling her a check would be mailed in the next two business days.

While she doesn't have it yet, she hopes her experience will help others "to hopefully get answers and to get their payout."

The Illinois Department of Insurance did not immediately respond to requests for comment, but TruStage said they have been in touch with state regulators.

The company also said it will reimburse McWoods for any premium payments that were withdrawn after her father's death.

CBS News Chicago Investigators asked the Illinois Department of Insurance several questions related to this story. After it aired, we received their answers. Our questions and their answers are below.

Q: Has the Department received complaints from Illinois policyholders or beneficiaries regarding TruStage's delays in acknowledging claims, communicating with beneficiaries, or paying life insurance death benefits? If so, how many complaints have been received, and what concerns have they raised?

A: Since July 11, 2026, the Department has received total of 14 consumer complaints regarding claims issues for TruStage Financial Group. There were 17 other complaints received during that time period regarding unrelated issues.

Q: Is the Department aware of TruStage's reported claims-processing disruptions following the cyberattack, and has it communicated with the company about the impact on Illinois consumers?

A: Pursuant to 215 ILCS 215/20, the company has communicated regular updates to Illinois on their ongoing efforts to restore their systems following the recent cybersecurity event. In addition, the Iowa Insurance Division in the company's domicile state has provided updates to all states on these efforts as well. 

Q: Based on the delays reported by beneficiaries, could TruStage be in violation of Illinois insurance regulations? A viewer we spoke with did not get acknowledgment of her claim for more than 11 weeks and she is now well beyond the 60-day pay out deadline. Has the Department opened an inquiry or investigation into the company's handling of these claims?

A: The Department is aware of the cybersecurity event, and we stand ready to assist any consumer experiencing concerns related to this event.

We recommend that insurance consumers visit the company's website for information here: TruStage recovery status and online resources. Consumers can also file a complaint with the Department, if they believe the company is not honoring the terms of their policy. Consumers looking for more information about the complaint process are encouraged to visit our "Understanding the Consumer Complaint Process" resource page.

Q: Does a cyberattack or loss of access to policy records excuse an insurer from otherwise applicable claims-handling requirements? Has the Department granted TruStage any extensions or other regulatory relief related to this incident?

A: There have been no extensions to statutory or regulatory requirements due to the cybersecurity event.

Q: What should beneficiaries do if they have been unable to obtain updates on their claims or receive payment within the applicable timeframe?

A: The Department recommends that insurance consumers visit the company's website for information here: TruStage recovery status and online resources. Consumers can also file a complaint with the Department, if they believe the company is not honoring the terms of their policy. Consumers looking for more information about the complaint process are encouraged to visit our "Understanding the Consumer Complaint Process" resource page.