At some point in life, most people decide they need a life insurance policy to provide for loved ones after their passing. However, when that day comes, that last thing anyone expects is to have the life insurance company refuse to pay the death benefit.
What to Do if You are Denied Death Benefits
Death brings with it a lot of strong emotions. If you are a family member of the deceased and you are named the beneficiary of a life insurance policy, you have the right to claim those benefits. If you are met with delays or denial, it can significantly add to your stress and pain of the event.
You may not realize it but that these types of cases can quickly become complicated and difficult to resolve on your own. There are various reasons why a claim may be denied and the process of appealing can feel overwhelming.
Reasons for Life Insurance Denial
Some of the reasons why a life insurance company may deny someone benefits include:
Payment – If the policy dues are in arrears, a company may deny paying out the benefits. If the policy lapsed at any time and was never properly reinstated, then it was not legally in place at the time of death.
Misrepresentation – If the policyholder misrepresented any information on their application such as a health issue, smoking, or total income, the company might deny benefits on that basis also.
Outside of Scope – If the claim falls outside of the scope of the policy, then denial is probable. For example, if the deceased’s family did not claim benefits within the reasonable period (usually a few years after death), their claim may no longer be valid.
Suicide – If the policyholder takes their own life, it will invalidate the policy.
Illegal Act: If the person died while performing an illegal act, the policy will most likely be denied.
What to Do if You are Denied Death Benefits
The first thing you should do is secure legal counsel. Appealing a death benefits claim can be a frustrating and complicated process. You need someone with experience who can help resolve it efficiently.
Your attorney will help you gather evidence and provide proof while helping you contest the denial of your life insurance benefits. Your lawyer can help you navigate the legal system and, if necessary, take legal action against the insurance company if they still fail to honor the policy.
Life insurance companies don’t want to pay out big sums of money. If you have been denied your life insurance benefits, contact Baron, Herskowitz, and Cohen today for a free consultation and guidance.
