If you’ve recently found yourself dealing with a life insurance claim rejection, you are not alone. Many beneficiaries face confusion, frustration, and even fear when an insurer denies their claim. These feelings are perfectly understandable, especially during such a difficult time. Losing a loved one is already hard enough, and when you are depending on the life insurance policy to provide financial support, a claim denial can feel like an additional blow.
If you find yourself in this situation, it’s crucial to understand that you have options. While insurance companies have specific rules they follow, they are still required to act fairly and in good faith. If your claim has been wrongfully denied, you don’t have to face this challenge on your own. An experienced attorney can help guide you through the process, protect your rights, and fight for the compensation you deserve.
Understanding Life Insurance Claim Denials
Insurance companies may deny claims for various reasons, but it’s important to remember that their decision doesn’t always reflect the truth of the situation. They may have pointed to a technicality or misinterpreted the terms of the policy. It’s also possible they simply hope that you’ll give up without further pursuing the claim. This can be incredibly frustrating, especially when you’re already dealing with grief.
Some common reasons for life insurance claim rejections include missed premium payments, the policyholder’s death occurring during a contestable period, or disputes over the cause of death. Insurers might also claim the policyholder misrepresented information during the application process. While these are legitimate grounds for a rejection, not all denials are justified. If you believe your claim was unfairly denied, it’s crucial to take action quickly to protect your rights.
The Contestable Period
Many life insurance policies include a contestable period, typically the first two years after the policy is purchased. During this time, the insurance company can investigate the claim more thoroughly and may deny it if they find that the policyholder misrepresented information or committed fraud. If the cause of death occurs within the contestable period, the insurer may question whether the policyholder was truthful during the application process.
It’s important to note that even if the death occurred during the contestable period, it does not automatically mean the insurer is right in denying the claim. The law requires insurance companies to prove that misrepresentation or fraud occurred. If they fail to do so, the claim should be paid out.
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
What to Do If Your Claim Is Denied
If your life insurance claim has been denied, there are steps you can take to challenge the decision. First, it’s important to carefully review the denial letter to understand the reasons for the rejection. Insurance companies are required to provide a clear explanation of why they’re refusing to pay the claim. Once you understand their reasoning, you can begin gathering evidence to refute their claims.
If the rejection is based on a misunderstanding or incorrect information, you can provide the insurance company with new documentation or evidence to prove the validity of the claim. This could include medical records, witness statements, or any other relevant information that supports your case. If the insurer remains uncooperative, you may need to consider legal action to force them to honor the policy.
When to Contact an Attorney
Life insurance claims can be complicated, especially when dealing with a rejection. If you find yourself in this situation, it’s essential to have an attorney by your side. A lawyer experienced in handling life insurance disputes can help you review the policy, gather evidence, and communicate with the insurance company on your behalf. In some cases, they may even be able to negotiate a settlement without the need for a lengthy court battle.
Having an attorney can also help you better understand your legal rights and the claims process. A lawyer will know how to evaluate the terms of the policy, assess whether the insurer’s reasons for denial are valid, and determine the best course of action. If necessary, they can take the matter to court and fight for a fair outcome.
Settlements & Verdicts
Understanding Your Legal Rights as a Beneficiary
As a beneficiary, you have the right to be treated fairly by the insurance company. If your claim was denied in bad faith or without a legitimate reason, you may be entitled to damages beyond the life insurance payout. For example, you could seek compensation for emotional distress, additional financial losses, or attorney’s fees.
Insurance companies are regulated by state and federal laws, and they cannot act in bad faith. If they deny your claim unfairly or without sufficient evidence, they can be held accountable for their actions. An attorney can help ensure that your rights are protected and that the insurance company is held responsible for their unfair practices.
Appealing the Denial
Most insurance companies have an appeal process in place for rejected claims. The appeal process allows you to challenge the denial and present additional evidence or clarification. However, navigating the appeal process can be time-consuming and complicated, so it’s beneficial to have legal support during this time.
An attorney can help you prepare the necessary paperwork, submit your appeal, and negotiate with the insurance company on your behalf. If the appeal is denied, your lawyer can help you determine if further legal action is necessary. It’s important to keep in mind that the sooner you act, the better your chances of success. Delaying the appeal process can weaken your case and make it harder to recover the benefits you’re entitled to.
If the insurance company continues to deny your claim or refuses to offer a fair settlement, your next option may be to take legal action. In Massachusetts, you can file a lawsuit against the insurance company for breach of contract and bad faith if they refuse to honor a valid claim.
While the thought of going to court can be overwhelming, it’s important to remember that you have the right to seek justice. In many cases, insurance companies will choose to settle rather than face the costs and risks of a trial. If your case does go to court, having an experienced attorney by your side can significantly improve your chances of a successful outcome.
Dealing with a life insurance claim rejection can be an emotional and overwhelming experience, especially when you rely on the policy to provide financial support after the loss of a loved one. While the process can be challenging, you don’t have to go through it alone. With the right legal support, you can fight back against unfair denials and work to ensure that you receive the benefits you deserve.
If your life insurance claim has been denied, don’t wait to take action. Reach out to a trusted attorney who can help you understand your options and protect your rights. At Trief & Olk, we are committed to guiding you through this difficult process and helping you secure a fair resolution for your case. Let us put our experience to work for you and fight to get the compensation you’re entitled to.
