Losing a family member or close friend is one of life’s most difficult experiences. The situation can become more complicated when a claim for life insurance is denied. Those who are left behind often count on the proceeds as a means of financial support and may be quickly left destitute, if no action is taken. An experienced insurance attorney can help with the claim filing procedure and provide assistance with a denied claim.
Types of Life Insurance
Life insurance is defined as a contract between the insurance company and the person holding the policy. The policyholder pays premiums to the insurer in order for a beneficiary to receive funds if the policyholder dies. Two common types are term life insurance and whole life insurance. The first type is typically lower in cost and provides benefits over a fixed period of time. The second type increases in value as the premiums are paid. Worker’s compensation benefits are not usually part of a life insurance policy. In addition, life insurance policies do not pay out on suicides.
Why Claims are denied
As the majority of life insurance policies involve large amounts of money, insurers will find any way possible to deny a claim. The three most common reasons for a denial are failure to pay premiums, policyholder dishonesty or insurance company fraud. In some cases, an insurer may deny a claim without a proper investigation. If a claim is denied, the insurer must provide an official letter of denial that fully explains the reasons why the policy will not be honored. The insurer must also explain ways in which the the policy may be made valid once again. A statute of limitations, which varies from state to state, will apply to the claim. This is why it is important to consult with a Florida insurance lawyer as soon as possible.
Life insurance can be a vital component to a family’s financial survival, especially in the case of an unexpected death. Consulting with a life insurance attorney can expedite the payment process or aid in investigating the reasons why a claim was denied. We are available 24 hours a day, 7 days a week to speak with and explain your situation during a free consultation.
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