Denied insurance claims happen. There would be no need for insurance lawyers to defend the rights of those who are owed coverage if it weren’t for the fact that some insurance providers act in bad faith in some cases.
The last thing anyone who is dealing with a life insurance claim wants to deal with is the surprise that they might not get the benefit they were relying on. They are probably already in a grieving period, struggling just to get by emotionally. When the legal hardship of a life insurance denial comes up, it can be overwhelming during an already overwhelming time of loss.
A life insurance dispute could be just that, however: a dispute. A dispute is worth taking on in life insurance cases, as there is often a significant amount of money on the line, as well as the financial stability of a mourning family.
Part of addressing a life insurance denial is understanding why a provider might be denying coverage. The following are the common trends behind a life insurance company’s death benefit denial:
The plan was relatively new, under two years old
Financially, it makes sense why an insurance company wouldn’t be thrilled about paying out a big sum when a plan was young. Its holder didn’t put as much into the premiums as someone else who might have been paying premiums for decades. Still, a young life insurance plan doesn’t mean it is non-existent and benefits are not owed.
The policy holder lied on the application
Great. The insurance company is saying your deceased loved one was a liar. Yes, a company will do that in order to try to get out of paying a death benefit. Maybe a health condition led to the death of your loved one and an insurer believes the policy holder knew and lied about the health risk. A company has to do more than suspect that; it has to prove that the policy holder intentionally lied in order to get the plan in place.
Defending your right to death benefits can mean more than protecting your financial security. It can be about defending the integrity of the person who has passed, as well as his or her desire to protect the future of their loved ones.