Understanding Why Life Insurance Claims Are Denied
Life insurance companies sometimes deny claims for various reasons. One common reason is a dispute about the accuracy of the information provided in the original application. If the insurer believes the policyholder did not disclose certain details about their health, lifestyle, or other factors, they may claim that the policy was issued under false pretenses. This could lead to the denial of a claim even when the policyholder paid their premiums regularly. Another reason for a denial is missing premium payments. Life insurance policies require consistent payments, and a lapse in those payments can give the insurance company grounds to reject a claim. Additionally, the timing of the policyholder’s death can be a factor. For example, if the death occurs within the contestability period, which is typically the first two years after the policy is issued, insurers may review the claim more closely and deny it for reasons they might not consider valid outside this period. Errors in paperwork or administrative issues can also lead to claim denials. In some cases, the insurance company might argue that the cause of death is excluded under the policy terms. Understanding these reasons and knowing your rights is crucial, which is why having an attorney by your side can be invaluable.
The Importance of Reviewing the Insurance Policy
An attorney can help you carefully examine the life insurance policy to determine if the denial is valid. Insurance contracts can be complex and full of legal terms that are difficult to understand. A New Jersey attorney will review the fine print, identify any clauses or exclusions, and assess whether the insurance company acted in bad faith. If the denial appears unjustified, the attorney can take steps to challenge it. In some cases, the policy may have been misinterpreted or misrepresented by the insurance company. An attorney will ensure that your rights as a beneficiary are protected and that the insurer upholds its obligations under the policy. This attention to detail can make all the difference when pursuing the benefits you are entitled to receive.How an Attorney Can Help You Gather Evidence
When a life insurance claim is denied, providing clear and thorough evidence to support your case is essential. An attorney can assist you in gathering the necessary documentation and presenting it in a compelling way. This might include medical records, payment history, correspondence with the insurance company, or witness statements.
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
Challenging the Insurance Company’s Denial
Life insurance companies often have teams of lawyers working to protect their interests, which can make it intimidating for beneficiaries to challenge a denied claim on their own. A New Jersey attorney can level the playing field by negotiating with the insurance company on your behalf. They can communicate directly with the insurer, present your evidence, and argue your case in a way that compels the company to reconsider its decision. If negotiations do not result in a resolution, an attorney can help you take legal action. This might involve filing a lawsuit against the insurance company for breach of contract or acting in bad faith. While litigation can be complex, having an attorney to guide you through each step increases your chances of a successful outcome.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.