A life insurance claim denial can be devastating, especially if you were waiting for an insurance policy to pay out in order to cover bills and costs incurred since loved one passed away. Denials of life insurance claims are far too common, even though there is frequently nothing wrong with the policy that would prevent beneficiaries from being paid. The problem is that insurance companies are often focused more on their bottom line than on ensuring that a purchased policy provides for those whom the life insurance coverage was intended to protect.
While you may be worried and stressed if you have received a life insurance claim denial, you can often successfully appeal a denial or use the legal system to force an insurer to pay in accordance with the policy. An experienced attorney at Boonswang Law will review your case for free, help you determine if you have recourse for compensation and, if so, aggressively fight to get you your money.
Common Reasons Why Life Insurance Claims are Denied
Insurance companies often scour a policy after the policy holder’s death to try to find a way to deny a claim. Below are four common reasons for life insurance claim denials:
- The insurer may argue that the insured lied on the policy or failed to disclose information. Misrepresentation can invalidate an insurance contract, but not every mistake or omission will result in a life insurance claim denial. For example, if the policy holder inadvertently put wrong age on the application, an insurer may recalculate benefits and premiums based on the correct age but should not refuse payment altogether. Insurers also have a limited period of time (typically two years from the purchase of the coverage) to contest the policy.
- The insurer may claim the death was due to self-inflicted injury. The insurance company has the burden of proving that the deceased harmed himself or took his own life in order to avoid payments to beneficiaries.
- The insurer may argue that the premiums were not paid. Even if all premiums were not paid, some policies include a grace period before the policy coverage ends.
- Insurers may argue that a policy was not properly reinstated. Specific steps must be taken to reinstate a policy and questions may be raised about whether protocol was followed.
These are just a few common justifications that insurers give for refusing to make life insurance payouts out to beneficiaries after an insured’s death.
Getting Help After a Life Insurance Claim Denial
Life insurance policies are legally binding contracts and insurers must abide by the policy terms and act in good faith in processing and paying claims. If an insurance company denies your claim for a reason you do not believe is legitimate, you owe it to yourself and to the deceased who paid premiums (sometimes for years) to call an attorney and take action.
Boonswang Law is dedicated to fighting for beneficiaries after life insurance claims are denied. Call today to schedule a free consultation and learn more. If we represent you in your life insurance dispute, you will not pay legal fees unless we recover funds for you.