When it comes to life insurance, there are many advantages one can receive compared to any other financial instrument, one of them being the favorable tax treatment. The beneficiary doesn’t have to care about money when a loved one has passed away because he/she receives the benefits that were anticipated. This ensures one is safeguarded from any financial blow that may arise from the demise of a loved one. But what happens when the insured dies and the insurance company denies the beneficiary a claim? Is there any legal step one can take? One may even wait for weeks or months for the policy issuer to pay the benefits, only to finally be told the claim is not valid. If the insurance company is still claiming they are investigating your claim even after submitting the paperwork, you might be on your road to being cheated. The best thing you can do is to look for a lawyer as soon as possible who will demand payment form the insurance company.
Why Your Life Insurance Claim Can Be Rejected
Though life insurers pay death benefits to the beneficiaries of the deceased, there are still thousands of claims that are denied every year. Life insurance companies will always incorporate exclusion clauses to reduce the risks of giving out large sums of money to the beneficiaries. If you’re among the number, you may want to have some legal representation to exercise your rights. The best thing you can do is to look for an excellent lawyer to help you. Most of the victims of life insurance denial in Wasilla have found solace from top attorneys and laws firms in Wasilla Ak. You don’t want anyone to play games with what is meant to offload the financial burden when your loved one is gone. The insurance company always reviews the application and looks for any reason to cancel your policy retroactively. With so many ways of getting life insurance policies, there are also many methods of life insurance companies denying your claims. If an insurance company has denied your claim, it may be because the below factors were not considered when taking up the policy. They include:
- Failure to pay up policy premiums: You can’t collect the benefits if premiums elapsed. One way to avoid this is to have these premiums deducted directly from the checking account. Insurance companies have strict terms and policies that need to be followed such as grace period. If this time elapses, you’re required to pay premiums with interests. The life policy is active as long as these premiums are being paid.
- Dishonesty: If the insurance company discovers there was a fraud, they may deny your claim. For instance, the insured may have indicated that they don’t suffer from a certain chronic disease but dies as a result of the disease. The insurance company has all the reasons to deny that claim.
- The policy did not cover the death of the insured: A life insurance policy may not cover certain deaths. Some include suicidal deaths or deaths where criminal activities are involved. However, this depends on the facts of the case. For example, death from homicide may have the benefits paid, but the process may be complicated and hence delay the payout.
- Change of beneficiary after divorce: Divorce doesn’t change the life insurance policy. If one wants to make any changes to the policy, one must inform their life insurance carrier and make sure not to violate any court order. If this doesn’t happen, the insurance company may deny the claim. Such a case that involves violations of court orders may be overwhelming; one may require some advice from an attorney before deciding to file a claim.
If a life insurance company is denying your claim as a beneficiary, they must provide a reason. If the reason is not valid, then they must be acting in bad faith. If you’re in such a situation and don’t understand why your benefits are being denied or even delayed, you may consider speaking with an attorney to get to know what’s the issue. Either insurance company denied your life insurance, slip, and fall, auto insurance, personal injury, or accidental insurance. Phoenix car accident attorney is also here to help you.
Getting Legal Assistance
If you believe you were wrongfully denied life insurance benefits, you should look for legal assistance. The life insurance company will require some documents to be sent for review after a claim is denied. If you want the best, ensure to walk through this battle with the help of a qualified attorney who understands how to deal with such cases. The attorney will help you provide the right information needed. He/she will review your case to determine whether your claim was wrongfully denied. Where statutes of limitations apply, your lawyer will ensure to follow the insurance regulations laws. After your claim is successful, you will have to select the best option on how your policy will be paid out. This will either be in a lump-sum amount, life income with a guaranteed period of time, or even life income option among others.
