Understanding why life insurance disputes happen
Life insurance is meant to help loved ones after someone passes away. It provides money to support a spouse, children, or other family members. But sometimes, when it is time to receive the money, there are problems. One issue might be that more than one person is claiming the money. Another issue could be that the insurance company says the policy was not active, or that the person who passed away gave incorrect information when they applied for the policy. Sometimes, insurance companies delay paying the money or try to deny the claim completely. Disputes can also happen when there is a change in who is named on the policy. If someone changed the beneficiary before they died, other family members might argue that the change was not valid. Some people might say the person was forced or confused when making that change. These types of arguments can make things very complicated, and they often lead to lawsuits.What the law says in New Jersey
In New Jersey, life insurance is governed by both state and federal laws. The insurance policy is a contract, and that contract must be followed. But when there is confusion or disagreement, the courts may step in to help settle the matter. New Jersey courts look at who was named as the beneficiary, whether the policy was active, and if the person who passed away followed all the rules when they got the policy. If someone thinks the policy was changed unfairly, or if the insurance company refuses to pay for reasons that seem wrong, a judge can review the facts and make a decision. This is where having someone who knows the law becomes important. It can be very hard to fight these cases without legal help, especially when dealing with a large company.
First step gathering all the documents
Before doing anything else, it is important to gather all the paperwork related to the life insurance policy. This includes the actual policy document, any letters or notices from the insurance company, and any emails or forms showing changes to the policy. If there is a dispute over who should get the money, any wills or estate documents will also be important. This paperwork can show what the person who passed away wanted. It can also show if the insurance company followed the law. Sometimes the documents will show mistakes, or that the company did not communicate clearly. This can help build a strong case.Second step contacting the insurance company
After gathering the documents, you need to contact the insurance company to find out exactly why the money has not been paid. The company must explain its reasons in writing. This could be a denial letter or a letter saying they are holding the money until the dispute is resolved. Sometimes the company will deposit the money into a court account while the disagreement is worked out. This is called an interpleader action, and it often means the insurance company does not want to be involved in the fight over who should receive the money. Once you understand the reason behind the delay or denial, you can begin to take steps to fix the problem. But you should not try to do this alone. The language in these letters can be hard to understand, and one wrong step can make it harder to win your case.Third step deciding if you need to go to court
Sometimes, it is possible to settle the problem without going to court. This might happen if both sides agree to a solution, or if the insurance company changes its mind after more facts are shown. But in many cases, court becomes the only way to solve the dispute. If the case goes to court, each side presents their facts and the judge makes a decision. New Jersey courts take these matters seriously, especially when family members are arguing. The judge will look at all the facts, including the policy, the person’s health, their mental state when changes were made, and what the law requires. This process can take time, but it is often the best way to make sure the right person gets the money.
We contacted Trief & Olk to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”
- John Ramig
If there is any possibility of winning your life insurance case – this is the place to do it for you. They are efficient, honest and will achieve the best possible outcome.
Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”
- Kathleen Brown
Trief & Olk is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.
- Christopher Hughes
Fourth step dealing with claims of fraud or wrongdoing
If someone claims that the life insurance policy was changed due to fraud or pressure, the court will need proof. This can include testimony from doctors, caregivers, or friends who knew the person well. It might also include emails, texts, or other written communication. The court will want to know if the person was able to make clear choices, or if someone took advantage of them during a time of weakness. These cases can be emotional. They often involve close family members, and the arguments can bring up old feelings or family disagreements. A clear, calm approach is best. That is why having a lawyer who can handle the facts and keep the process fair is so helpful.Fifth step following New Jersey’s legal rules for deadlines
Every case must follow legal deadlines. In New Jersey, there is a time limit for filing a lawsuit over life insurance proceeds. This is called the statute of limitations. If you miss the deadline, you might not be able to bring your case at all. That is why it is so important to act quickly once a dispute arises. Even if you are still grieving, you should reach out for help as soon as you notice something is wrong with the insurance claim. A delay could cause major problems down the road. When you act early, you have a better chance of protecting your rights.Life Insurance Denial Statistics
20%
The annual average number of life insurance claims denied.
$50 Million
The yearly average dollar amount of claims denied by life insurance companies.
.2%
The number of claims appealed annually by consumers.