Having life insurance is an important and responsible way to offer protection to your loved ones should you pass away. In most cases, claims on life insurance policies go through without any trouble. There are times, however, when life insurance companies attempt to deny claims. Understanding why they do this, and how you can figure back, can help ensure you get the money that you are entitled to.
Misrepresentations on a Policy
When a life insurance claim is made within the first couple years after a policy is taken out, insurance companies will often check into the health and history of the policyholder. If they find that there were known health issues that were not listed in the policy application, or misrepresented, they can attempt to deny the claim.
It is important to always fill out an application properly, and honestly, to avoid denial of the claim. Just because an insurance company claims that there were misrepresentations, however, doesn’t mean that you aren’t entitled to the claim. In many cases, you can take your case to court to show that any inaccuracies or omissions weren’t intentional, and may not have been related to the death of the insured.
Errors Made by an Employer
Many people get life insurance policies through their employer. These are group policies and can be a very easy and affordable way to get life insurance. The employer is responsible for properly explaining the benefits to the employees, and for making sure everything is filed correctly with the insurance companies. If there are errors made, the life insurance company may deny the claim. Depending on the situation, you may be able to demand the claim be honored, or if the employer was at serious fault, even demand that they pay out the claim.
Beneficiary Changes
Claims may be denied if you are not listed as the beneficiary. This may occur because the policyholder changed beneficiaries after a divorce or other event. While only the legal beneficiary is able to file a claim, you may be able to show that the beneficiary change should not have gone through (like if your divorce hasn’t been finalized, or if your spouse was obligated to maintain life insurance to cover child support or other obligations).
Policy Exclusions
Every life insurance policy has some exclusions written in to provide protections to the life insurance company. These policies are written with very precise language to maximize the number of claims that are able to be denied. Insurance companies may try to take the most encompassing view possible about an exclusion, which is not necessarily how the courts will see it.
Don’t Give Up – We’ll Fight for You
If you have had a life insurance claim denied, you may still have options available. Contact Trembly Law Firm to discuss how we can help. We’ve successfully represented many clients against insurance companies, and would be honored to help you during this difficult time.
