About Life Insurance Claim Denials
These days there are many different, tailored life insurance policies available for purchase. With the variety of plans come a variety of different ways for insurance companies to deny your insurance claims.
Reasons for Denial
The following are just a few examples of life insurance claim denials. One is misrepresentation on the application. Life insurance applications must be completed with absolute accuracy, especially in terms of medical history.
If an insurance carrier denies a life insurance claim via policy rescission, call the attorneys at Merlin Law Group. There are several obstacles the insurance carrier must face to deny this claim. Merlin Law Group attorneys are well versed in these obstacles and can help you receive the benefits of a life insurance claim.
Another common form of denial is for negligence (i.e. a fatal car crash as a result of drinking and driving) or suicide claims. In the analysis of medical or forensics, a professional will make or break a life insurance claim
Additionally, a common form of denial arises from a lapse in premium payments. This type of claim denial hinges on several factors and can be addressed with the administrative tools that Merlin Law Group attorneys have at their disposal.
When a loved one with a life insurance policy passes away, the insurance company may deny the claim for misrepresentations on the application. The insurance company states it would never have issued the policy had it known the truth. The insurance company may refund a few thousand dollars of paid premiums and consider the policy void from the outset.
Thoroughly check any insurance application before submitting it, or go through it again before the policyholder passes away. If something has changed or is incorrect, be sure to notify the insurance company.
If the insurance company still tries to deny your claim on the basis of misrepresentation, an attorney from Merlin Law Group may help unwind the situation and help you receive coverage.
Dissolution of Marriage
Divorce is fairly common and many wonder what happens to the life insurance policy when divorce occurs, as a spouse is often named as a beneficiary. In some jurisdictions, divorce automatically divests the spouse as beneficiary, but not all.
Some statutes will take this decision out of your control and default it to the estate. Keep your insurance company updated on who you want your beneficiaries to be.
The Sick and Elderly
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.
If the insurance company isn’t acknowledging the grace period correctly, or they didn’t notify the policyholder of missed payments, then contact an attorney at Merlin Law Group.
Need More Information?
If your life insurance claim has been denied, delayed or underpaid, contact Merlin Law Group today for a free consultation.