If you are the beneficiary on a life insurance policy, you must file a claim after the named insured has passed away. The life insurance company should pay out the death benefit, allowing you to use that money to take care of financial needs and move on with your life.
Regrettably, insurance companies sometime send a denial letter instead of a life insurance payout. Having a life insurance payout denied can be devastating, especially since the deceased paid for you to be protected and you may be counting on that money. However, you do not have to simply accept that the money is gone. An experienced life insurance attorney at Boonswang Law can review your case for free and help determine if the insurance company acted appropriately. If not, our firm will represent you and fight to get you the payout you deserve. We will only charge legal fees if we recover money for you.
Taking Action After a Life Insurance Payout Is Denied
When an insurer denies a life insurance claim, the insurer must provide notice and information on the reason for the denial. You may be able to appeal this denial with the insurance company through an internal appeals process. This process should be explained in your policy or in your denial letter. Unfortunately, this internal appeal is not always an option and asking the insurer to reconsider is not always effective.
Another solution after having a life insurance payout denied is to use the court system to force the insurer to pay as promised. Insurance policies are legally binding contracts and an insurer cannot refuse to fulfill the contract terms without a legitimate reason. If the death was covered by the policy, the insurer is required by law to pay. However, it is up to you to file a lawsuit, make a compelling argument and convince a judge or a jury to order the insurer to pay your rightful compensation.
An Attorney Can Help After Having a Life Insurance Payout Denied
After a life insurance payout has been denied, Boonswang Law negotiates with the insurer to come to a resolution. In some situations, simply letting the insurer know you have a lawyer representing your interests is enough to persuade the insurance company to stop its unfair delay and deny tactics and pay the money you should receive.
In other cases, claimants must take more forceful legal action. Every insurance policy contains an implied covenant of good faith and fair dealing, which means that the insurer must treat you fairly and act reasonably when handling a claim. A denial of an insurance payout with no legitimate grounds and no real reason to refuse to pay on the policy is not acting in good faith.
Because the law recognizes that people place a great deal of trust in insurers and are dependent on the insurance company to keep its promises, the laws provide strong protection to insured policyholders with respect to insurers acting in bad faith. Beneficiaries who believe their insurers are acting in bad faith may sue in a civil tort action and sometimes recover damages greater than policy limits.
To get help after a life insurance payout is denied, call Boonswang Law today to schedule your free consultation and learn more.