When you lose a loved one or someone in the family, everything seems to be falling down on you. Death in the family is something that’s very difficult to deal with, and it really becomes worse when you hear the news that the life insurance company is refusing to pay the life insurance benefits. In this article, we’ll help you understand and learn your options to dispute life insurance claim denials. Remember, you can’t just give up once the insurance company bails out on you and your family. If the scenarios favor you, learn to fight back.
Why Is the Claim Denied?
You know that every claim for benefits under this kind of policy will be thoroughly and extensively reviewed and examined. Accordingly, there will always be a possibility that some of them won’t be paid out. The question is why? What’s the reason for a claim to be denied? Generally speaking, there are four main reasons. These are:
– Fraud was committed by either the beneficiary or the insured.
– There was non-payment of premiums.
– The cause of death is categorized within a named exclusion on the policy.
– There is material misrepresentation by the insured on the application form.
In the event that the life insurance claim is denied, the company usually states that if the facts about the insured individual were known during the application, the policy wouldn’t have been issued and released in the first place. For the insurer’s perspective, any omission or misstatement is an opportunity to avoid paying out a claim, whether the omission or misstatement was relevant to the death of the insured or not. The claim may be initially denied if the application or any part of it is inaccurate. Read http://money.cnn.com/magazines/moneymag/money101/lesson20/ for some insurance tips.
How You Should Dispute a Claim Denial
In most instances, the reason of the life insurance claim denial is straightforward and clear. It usually involves the inability to uphold what was agreed upon in the contract, which eventually results to the contract being rendered void. But there are also instances when the facts of the case may be disputed. So if you think the claim was denied because of some error, you do have to fight for your right.
The first and most rational thing to do is speak to an individual at the insurance company. Your conversation must be focused on why the claim was denied. It is within your right to ask for details, clarifications, and all the specifics. You can then request for a certified copy of the insurance policy. This will come in handy while you study all the angles.
Upon reading and reviewing the policy, you realize that the denial was still made in error; this is the time when you build your case. Of course, you need all the necessary paperwork, receipts of payments made, medical records, death certificate, and all you could think about that can contribute in the case.
Finally, you will have to consult with a life insurance attorney to handle the case for you. Keep in mind that you are taking on a giant in the form of an established insurance company. So the only way you get the chance to dispute a life insurance claim denial and be successful is if you have the right people to help you out. Naturally, an attorney that specializes in life insurance claim delays and denials is your best option.