Understanding Employment-Based Life Insurance
Employment-based life insurance is a benefit provided by employers to their employees. This type of insurance is meant to protect the employee’s family or other designated beneficiaries in case of the employee’s death. Typically, the employee pays for a portion of the premium, while the employer covers the rest. Upon the employee’s death, the policy is meant to pay out a lump sum to the beneficiaries listed in the policy. The payout is intended to help with funeral costs, outstanding debts, and other financial needs. When a claim is denied, it can create additional stress for the beneficiaries at an already challenging time.Common Reasons for Life Insurance Claim Denials
Life insurance companies may deny a claim for several reasons. One common reason is that the policy may have lapsed. If the premiums were not paid, even for a short time, the insurance company might refuse to pay out the benefits. Another reason may be related to inaccuracies or omissions in the policy application. If the employee did not disclose a medical condition or provided incorrect information, the insurance company could use this as a reason to deny the claim. Additionally, if the cause of death is excluded from the policy, such as death from a pre-existing condition or suicide within a certain time frame, the company may refuse to provide the payout. These reasons are often stated in the fine print of the policy, and understanding them can be difficult without legal help.
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
Legal Rights of Beneficiaries in Massachusetts
As a beneficiary, you have certain legal rights when a life insurance claim is denied in Massachusetts. Life insurance policies are contracts, and if the insurance company fails to honor the contract, you may have grounds to challenge their decision. Massachusetts law requires insurance companies to act in good faith when handling claims. This means they must thoroughly investigate the claim and not unfairly deny it. If you believe the denial was unjust, you may be able to take legal action to seek the benefits you are owed. Massachusetts courts recognize that beneficiaries depend on life insurance payouts to cope with financial burdens after the death of a loved one. The courts may review whether the insurance company followed proper procedures when denying the claim. In some cases, you may be able to file a lawsuit against the insurance company for breach of contract or bad faith practices. A legal professional familiar with life insurance laws in Massachusetts can guide you through this process.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.