Life insurance pays out a death benefit to beneficiaries after the death of the insured… or at least that is the way that life insurance is intended to function. However, sometimes an insured will pay policy premiums for weeks, months or years and the insurer refuses to honor the policy after his or her death. The insurer, with a focus on its profits, may try to delay or deny payment to the policy’s beneficiaries.
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 delays payouts or engages in bad faith efforts to deny 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. Boonswang Law can help you file and litigate a lawsuit against an insurer, so call today to schedule a free consultation.
Filing a Life Insurance Lawsuit
Because a life insurance policy is a contract, a beneficiary who does not receive payment could file a breach of contract claim. However, these types of claims may not be the best approach to filing a life insurance lawsuit, as damages are limited in breach of contract cases.
Instead, claimants whose insurers unfairly delay or deny legitimate claims may wish to consider taking legal action for bad faith. A bad faith claim is a tort lawsuit which 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 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 policyholders have on insurers. A policyholder 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 beneficiaries.
Getting Help Filing a Life Insurance Lawsuit
Filing a life insurance lawsuit can be complicated, but Boonswang Law can help. Our practice is dedicated to fighting for life insurance beneficiaries who are treated wrongfully, and we have a strong track record of success. We are prepared to litigate your bad faith claim before a judge or jury, and we have helped many clients avoid the stress of trial by negotiating with the insurer to make payments 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 or life insurance lawsuit. Call us today to learn more.