If you are reading this, it’s likely that you are dealing with a difficult and confusing situation involving the lapse of a life insurance policy. Perhaps you are a beneficiary who has recently learned that a loved one’s life insurance policy was not active when they passed away. It is understandable if you feel uncertain about what steps to take next. At Trief & Olk, we are here to help guide you through the process with empathy and understanding. We recognize how overwhelming this issue can be and are committed to helping you achieve the best possible outcome for your case.
Understanding Life Insurance Lapse and Its Implications
When a life insurance policy lapses, it means that the policy is no longer valid. This can occur for a variety of reasons, with the most common being a missed premium payment. Life insurance policies generally require regular payments, and if these payments are not made, the insurer may terminate the policy. For beneficiaries, this can create a stressful situation, particularly if you were depending on the payout from the policy to cover expenses or secure your financial future.
Life insurance policies often come with specific terms that dictate when the policy can be considered lapsed, and the nuances of these rules are shaped by both the contract itself and the legal precedents in the state where the policy was issued. In New Jersey, legal precedents have established a framework for addressing cases involving life insurance lapses, particularly when a beneficiary disputes the validity of the policy or claims that they were unaware of the lapse.
New Jersey Legal Precedents on Life Insurance Lapse
In New Jersey, several legal precedents have helped shape the way courts handle cases involving life insurance lapses. The first key consideration in these cases is whether the insurer followed the proper procedures in notifying the policyholder of a potential lapse. Insurance companies are generally required to send notices to the policyholder before the policy lapses, informing them of missed payments and giving them an opportunity to rectify the situation. If these procedures were not followed, the beneficiary may have grounds to challenge the lapse and potentially restore the policy.
Another critical aspect of these cases involves the timing of the lapse. If the policyholder passed away before the lapse was officially processed by the insurance company, the beneficiary may still be entitled to the payout. Legal precedents in New Jersey have shown that the insurer must clearly establish that the policy was validly lapsed before denying a claim. If there is any doubt about the timing or validity of the lapse, it is possible to challenge the insurer’s decision in court.
What Beneficiaries Should Do After Learning About a Lapsed Policy
If you have recently discovered that a life insurance policy has lapsed, it is important to act quickly. First, you should carefully review the terms of the policy and check whether the insurer followed the proper procedures for notifying the policyholder about missed payments or lapses. If the insurer failed to send required notices, you may be able to challenge the lapse and seek the benefits owed to you.
Next, gather all documents related to the policy, including payment records, policy statements, and any communication from the insurer. This will be important evidence if you decide to pursue legal action. If you are unsure about whether the policy was properly lapsed or if you suspect that the insurer is acting in bad faith, it may be wise to seek legal counsel.
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
The Role of the Courts in Life Insurance Lapse Cases
New Jersey courts play an essential role in resolving disputes between beneficiaries and insurance companies. In many cases, the court will review the facts of the case, including whether the insurance company followed the necessary procedures, the timing of the lapse, and any other relevant details. Legal precedents in New Jersey indicate that the courts will typically rule in favor of beneficiaries if there is evidence that the insurer did not act in good faith or failed to provide proper notice of the lapse.
For example, in previous cases, New Jersey courts have ruled in favor of beneficiaries when it was determined that the insurance company did not properly notify the policyholder of a missed premium or failed to give the policyholder an adequate opportunity to cure the default. If you believe that your situation is similar, you may be able to seek the benefits you are entitled to through legal action.
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.Life Insurance Denial Statistics
Steps to Take If You Believe a Life Insurance Lapse Was Improper
If you believe that the lapse of a life insurance policy was improper or that the insurer is wrongfully denying your claim, there are steps you can take to protect your rights. First, gather all documentation related to the policy, including premium payment records, notices from the insurer, and any correspondence with the insurance company. This will be important evidence if you decide to pursue legal action.
Next, contact an attorney who has experience with life insurance claims and disputes. An attorney can help you assess the strength of your case, guide you through the legal process, and represent your interests in court if necessary. At Trief & Olk, we have helped many beneficiaries resolve disputes over life insurance lapses, and we understand how important it is to get the outcome you deserve.
Settlements & Verdicts
The Importance of Timeliness in Life Insurance Lapse Disputes
When it comes to disputes involving life insurance lapses, timing is critical. In New Jersey, there are time limits for filing claims or contesting a policy’s lapse. These time limits, known as the statute of limitations, vary depending on the type of claim and the specific circumstances surrounding the lapse. If you delay in taking action, you risk losing your right to seek compensation. It’s important to consult with an attorney as soon as possible after discovering the lapse, so they can help you navigate the legal deadlines and avoid any unnecessary complications.
If you are dealing with a life insurance lapse and need assistance, Trief & Olk is here to help. We understand that this is a difficult and emotional time, and we are committed to helping you navigate the legal process with care and compassion. Our team has a proven track record of success in life insurance disputes, and we will work tirelessly to ensure that your case is resolved favorably.
If you are unsure about whether you have a valid claim or if you are feeling overwhelmed by the complexity of your situation, don’t hesitate to reach out. We are here to answer your questions, provide you with the legal guidance you need, and fight for the best possible outcome in your case. Please contact Trief & Olk today for a consultation. We are ready to help you get the results you deserve.
To learn more about this subject click here: Fighting Back: Understanding Massachusetts Laws That Protect Beneficiaries from Life Insurance Denials