Life Insurance Claim
These days there are many different, tailored life insurance policies available for purchase. With the variety of insurance policies come a variety of different ways for insurance companies to devise ways to deny your insurance claims.
The following are just a few common examples of life insurance claim denials. Often, life insurance companies will seek to deny insurance claims based on misrepresentation on the application. It is extremely critical that life insurance applications are completed with absolute accuracy, especially in terms of medical history.
If you have already completed and submitted your life insurance application and your insurance carrier is denying your claim via policy rescission, call the attorneys at the Merlin Law Group. There are several obstacles the insurance carrier must face to successfully deem an insurance claim completely deniable. Merlin Law Group attorneys are well versed in these obstacles and can help you to avoid them and receive the benefits of your life insurance claim.
Another common form of denial insurance companies will use when it comes to life insurance claims are alleged negligence (i.e.: a fatal car crash as a result of drinking and driving) or suicide claims. These invasive claim types often require the professional opinion of industry experts. Industry experts your insurance carrier may not want to compensate for. The attorneys at Merlin Law Group are determined to get you the settlement you deserve. If the analysis of medical, forensic, etc. professionals will make or break your life insurance claim, then the attorneys at the Merlin Law Group will obtain them.
Another common form of denial that insurance companies use in reference to life insurance claims is the lapse in premium payments. This particular type of claim denial is often on a logistical or administrative basis and could hinge on several factors. These type of claim denials are often resolvable via a Civil Remedy Notice or CRN. This is a statutory tool that the Merlin Law Group attorneys are well versed in drafting.
Life Insurance Claim Denied
When a loved one with a life insurance policy passes away their insurance company sometimes denies the claim due to misrepresentations on the application that was sent in potentially years ago. The insurance company will state they never would have issued the policy had it known the opposite of the misrepresentation. The insurance company will then most likely refund a couple thousand dollars of paid premiums and consider the policy void from the outset, sometimes called void from the Ab Initio.
It is important to thoroughly check your insurance application before submitting it or go through it again before the policyholder passes away to make sure there isn’t any misrepresentation. If something has changed since the time the application was submitted, be sure to notify the insurance company.
Very few policyholders read their applications thoroughly before signing off on them and they also don’t review their policy carefully when they receive it.
If the application has been carefully reviewed and the insurance company still tries to deny your claim on the basis of misrepresentation, there are many ways an attorney from Merlin Law Group can unwind the situation and help you receive coverage.
Divorce is fairly common and many wonder what happens to the life insurance policy when divorce occurs. A spouse is often named as a primary beneficiary or the sole beneficiary on a life insurance policy. In a lot of jurisdictions, divorce will automatically divest the spouse as beneficiary. It is a rather strict situation but a lot of jurisdictions function that way by statute.
It is important to be careful when in naming your beneficiaries when divorce occurs. This will help you avoid difficult situations down the road with survivors or attorneys who are trying to sort out who gets what from your life insurance policy. If you would like to keep your ex-spouse on your insurance policy, it is important to make that clear. If you want to get your ex spouse off of the policy and instead place your daughter or son, that needs to be made clear to your insurance company as well.
In a lot of jurisdictions statutes will take it out of your control and default it to estate and your estate may not be set up well and your will may not have been the way you want it. Keep your insurance company updated on who you want your beneficiaries to be so come time, there are less confusions. Merlin Law Group can certainly help with any questions you may have.
Typically leading up to the policyholder’s passing, they will find themselves somewhat incapacitated whether it be mentally or physically. At this point the last thing on these policyholder’s minds, permitting their minds are still functioning clearly, is to pay a life insurance premium. Many times after a policyholder passes away, the beneficiary will find out that there are months of unpaid premiums and the insurance company is saying that there isn’t any coverage in effect.
When a loved one goes into a hospital, nursing home, or becomes physically or mentally incapacitated be mindful of the life insurance policy. Keep up on the premium payments and ideally try to have the policyholder on a form of automatic payment program.
Unfortunately, many older citizens are not using this technology so it is up to the primary beneficiary to make sure payments are completed. If one or two months have been missed there is usually a grace period where payments can be missed for a couple months and the policy will stay intact, so there is no need to panic.
If this has been completed and the insurance company isn’t acknowledging the grace period correctly or they didn’t notify the policyholder of missed payments, as many state they will do, then contact an attorney at Merlin Law Group as they will be happy to offer their services or simply answer any questions you may have.
Not every type of life insurance policy or form of denial/delay can be discussed here, so if you have any questions regarding your life insurance policy or believe you have a life insurance claim, please call the attorneys at Merlin Law Group immediately for a complimentary consultation.