Understanding Life Insurance Disputes
A life insurance dispute happens when there is a disagreement over who should receive the life insurance proceeds or how the policy should be handled. This can occur for many reasons, such as conflicting claims from different parties, questions about the validity of the policy, or concerns that the policyholder’s wishes are not being followed. Sometimes, disputes arise because a life insurance policy has multiple beneficiaries, and each person believes they are entitled to the proceeds. Other times, an insurance company may refuse to pay out the policy because they claim that the policyholder made false statements on the application, didn’t pay premiums, or died under circumstances that invalidate the coverage. Whatever the reason for the dispute, it can create emotional and financial stress for those involved. When you’re facing a dispute over life insurance proceeds in New York, it’s important to have a clear understanding of your rights. The legal process can be confusing, and knowing where you stand can make a big difference in how you approach the situation.
Why Life Insurance Disputes Occur
Life insurance disputes can happen for several reasons. One of the most common reasons is a disagreement between beneficiaries. In some cases, a life insurance policy may list multiple beneficiaries, but conflicts can arise over who should receive the proceeds, especially if one person believes the other doesn’t have a right to the funds. For example, if there are children from a previous marriage, they may challenge the current spouse’s right to the life insurance money, leading to a dispute. Another common cause of life insurance disputes is when an insurance company refuses to pay the policy. Insurance companies may argue that the policyholder made mistakes or misrepresentations on the application, such as failing to disclose a medical condition. They might also claim that the policyholder didn’t meet the requirements for coverage, such as missing payments or dying under circumstances that the policy excludes, like suicide within a certain time frame after purchasing the policy. Additionally, disputes may arise if the policy was changed before the policyholder passed away. If someone believes that the changes to the policy were made under pressure, fraud, or without the policyholder’s full knowledge, they may challenge the validity of those changes.What to Do If You Are Facing a Life Insurance Dispute
If you find yourself in a dispute over life insurance proceeds, the first thing you should do is stay calm and gather as much information as you can. Understand the details of the life insurance policy, including who the listed beneficiaries are, what the policy covers, and any potential reasons for the dispute. Being informed about the policy is the first step in understanding your rights.
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
How Trief & Olk Can Help
Handling a life insurance dispute requires a deep understanding of the legal landscape. When you work with Trief & Olk, we can help you by carefully examining the terms of the life insurance policy and reviewing the reasons for the dispute. We will work closely with you to ensure your rights are protected and will represent your interests in any negotiations or legal proceedings. If the insurance company has denied your claim, we can investigate the reasons behind their decision. Sometimes, insurance companies rely on small technicalities or vague policy language to justify denying a payout. We will ensure that the insurance company is following the law and not unfairly withholding the proceeds that you or your loved ones are entitled to. If the dispute is between multiple beneficiaries, we can help resolve the disagreement by negotiating a fair settlement or, if necessary, representing your interests in court. Our goal is to ensure that your loved one’s wishes are honored and that you receive the life insurance proceeds that were intended for you.The Importance of Acting Quickly
Time is of the essence in a life insurance dispute. Insurance companies have strict deadlines for filing claims, and if you wait too long, you may lose your right to the proceeds. Additionally, the longer a dispute goes unresolved, the more complicated it can become. Other parties involved may take legal action, or the insurance company may close the case, making it harder to recover the proceeds later. It’s important to act as soon as you become aware of a potential issue with the life insurance policy. Gathering evidence, obtaining legal representation, and filing claims on time are crucial steps to take in protecting your rights. At Trief & Olk, we are committed to helping you move through this process efficiently and effectively.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.