Can You Sue a Life Insurance Company?
In short, yes, you can sue a life insurance company. Life insurance lawsuits occur because life insurance companies refuse to pay claims or delay payment on claims for death benefits. Someone who was an irrevocable beneficiary to a life insurance policy might also sue the life insurance company if the beneficiary designation was changed.
If you are or should be a life insurance beneficiary and you are thinking of suing a life insurance company, call us. Our experienced life insurance lawyers have helped beneficiaries nationwide file life insurance lawsuits and get the payouts they deserve.
How Life Insurance is Supposed to Work
Life insurance companies pay out death benefits to beneficiaries after the death of the insured – or at least that is the way that life insurance is intended to function. It is rarely that straightforward.
Insurance companies are like any other type of business in that their purpose is to make profits. They only make profit when they collect premiums and delay or deny beneficiaries’ claims. We have had cases where an insured paid policy premiums faithfully for years yet the insurer refuses to honor the policy after his or her death and denies beneficiaries’ valid claims.
A life insurance policy is more than just a promise to pay after the death of the insured. It is a legally binding contract, and the insurer is legally required to abide by its terms. When an insurance company engages in bad faith efforts to delay or deny valid claims, the insurer can be held accountable for the beneficiaries’ losses.
A life insurance lawsuit gives those who are being treated wrongly by insurance companies the opportunity for recourse. The experienced life insurance lawyers at Boonswang Law can help you file and litigate a lawsuit against an insurance company. Call us today to schedule your free, no-obligation consultation.
Filing a Life Insurance Lawsuit
Can you sue for life insurance proceeds? Yes, and you should sue the life insurance company if your claim is being unfairly delayed or denied.
Suing the Life Insurance Company for Breach of Contract
A life insurance policy is a contract between the life insurance company and the insured. The insured’s beneficiary has standing to file a sue the life insurance company for breach of contract if they do not receive the death benefits. However, know that in breach of contract cases, damages (the money judgment you can obtain) are limited to the face value of the policy.
Suing the Life Insurance Company for Bad Faith
In the alternative, beneficiaries whose insurers unfairly delay or deny legitimate claims should consider suing the life insurance company for bad faith. Rather than a breach of contract action, a bad faith claim is a tort lawsuit that allows the beneficiary to obtain the life insurance payout to which he was originally entitled and, in some cases, recover money in excess of policy limits for damages caused by the insurer’s wrongful acts.
A bad faith life insurance lawsuit is possible because the law reads an implied covenant of good faith and fair dealing into every insurance contract. Although the contract may not explicitly state such a covenant, the law requires insurance companies to act fairly and in good faith in processing and paying claims.
The good-faith rules recognize the special dependence that the inserted has on a life insurance company. The insured pays for life insurance coverage for months or years, trusting that the policy will take care of his family or loved ones upon his death. The insurance company can be subject to severe penalties if the insurer unjustly tries to avoid its obligation to the policy’s beneficiaries.
Getting Help Filing a Life Insurance Lawsuit
Filing a life insurance lawsuit can be complicated, but Boonswang Law is here to help you. Our practice is dedicated to fighting for life insurance beneficiaries who are treated wrongfully, and we have a strong track record of success. Our skilled life insurance attorneys are prepared to litigate your bad faith claim before a judge or jury. We have also helped many clients avoid the stress of trial by negotiating with the insurance company to pay out, without litigating in court.
Your consultation is free and our attorneys do not charge for legal services unless we are able to secure compensation for you from a settlement with the life insurance company or a judgment from a life insurance lawsuit. Call us today at 1-855-898-4158 to discuss your case.