Understanding Employment-Based Life Insurance in New Jersey
Employment-based life insurance is a type of policy that is provided as a benefit by many employers. The employer typically pays a portion or the entirety of the premium, offering the employee peace of mind that their family will be cared for financially if they pass away. While these policies can be incredibly helpful, the process for making a claim and ensuring it is paid can sometimes become complicated. In New Jersey, life insurance claims may be denied for various reasons. Some of the most common reasons include discrepancies in the application, a missed deadline for filing a claim, or alleged misrepresentations about the policyholder’s health when the policy was first issued. When a claim is denied, it can feel like a daunting process to figure out how to challenge that decision. However, it is important to know that there are legal avenues available to reverse a denial and get the claim approved.Why Life Insurance Claims Are Denied
Understanding the reasons why employment-based life insurance claims are denied can be helpful for families seeking to appeal a decision. One of the most common reasons for denial is an alleged misrepresentation by the policyholder when they first applied for the insurance. This could be related to their health status, their occupation, or other factors that the insurance company deemed significant when determining their risk.
Steps to Take After a Denied Life Insurance Claim
If an employment-based life insurance claim is denied in New Jersey, it is important to act quickly. The first step is to gather all the documentation related to the policy and the claim. This includes the original policy documents, any communication with the insurance company, and the denial letter explaining the reasons for the decision. Carefully reviewing this information can provide insight into the specific reasons for the denial and help determine the best course of action. Once you have reviewed the documents, it is important to contact the insurance company to ask for further clarification if necessary. Sometimes, a denial is the result of a misunderstanding or missing information, and it may be possible to resolve the issue without needing to take further legal action. However, if the denial seems unjust or if the insurance company is not willing to work with you, it may be time to consider legal options.
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 Denial of an Employment-Based Life Insurance Claim
Challenging a denied life insurance claim requires a solid understanding of both the policy itself and the legal rights of beneficiaries in New Jersey. Beneficiaries may choose to file an appeal directly with the insurance company, but in many cases, hiring an attorney is necessary to ensure that the claim is handled properly. An experienced attorney can review the policy and the details of the denial to identify any potential legal issues or violations that the insurance company may have committed. In some cases, an attorney may find that the denial was based on incorrect information or an unfair interpretation of the policy. For example, if the insurance company claims that the policyholder misrepresented their health when applying for the policy, the attorney may be able to present evidence showing that the misrepresentation was unintentional or that it did not impact the insurance company’s decision to issue the policy. Additionally, an attorney can help ensure that the insurance company follows all state laws and regulations regarding life insurance claims. In New Jersey, insurance companies are required to act in good faith when handling claims, meaning that they must investigate and process claims fairly and without unnecessary delay. If an insurance company is found to have acted in bad faith, the beneficiary may be able to pursue additional legal remedies beyond just having the claim paid.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.