No matter who you are, what you do, and what age you are, everyone wants to make sure that they can provide for those under their care. Whether that is a family member, close relative, or spouse and offspring, ensuring that they have a good safety net to work with later on is important, even if that means ensuring one’s own death. That is where Life insurance policies help out quite a bit, and can be used as leverage when attempting to work with those around you.
Unfortunately, many of these policies can be extremely expensive and pricey to pay for. Depending on the length of a policy that you wish to hold, it can be hundreds, if not thousands, of dollars put into premiums and monthly payments, especially if you want to be covered for a wide range of possible outcomes.
Thankfully, there are some groups that can help with more basic policies for life insurance. One of the specific groups that helps those that hold a federal job are FEGLI options. FEGLI, or Federal Employees Group Life Insurance, help those that work for federal companies and employers that may not be able to afford such high priced premiums. Instead of those single payer private insurances, FEGLI allows employees to have a basic policy, given under the company, to help insure against a small range of possible deaths. Specifics do sometimes change from group to group, but can help when you are worried about the future.
But, since it is not a privatized insurance policy, many FEGLI contracts have quite a few stipulations and rules that must be followed. Unlike other contracts, that may allow for a bit of leeway, many FEGLI companies do not allow any leeway, and will attempt to always look a to deny a claim. One such reason is by not being an valid beneficiary.
Reasons For being an Invalid Beneficiary
Each federal company that a person works for will have varying stipulations and rules that must be followed by the beneficiary. This starts from the beginning, before the policy starts, throughout the entire time the policy is active, and even until the policy ends, albeit for a short period.
Before the process even starts, the state will generally hold a large say over who gets to be listed as a beneficiary. This usually comes up when attempting to deal with many different functions, such as dealing with a divorce. In these situations, a state or federal court may require that, instead of a beneficiary that the insured would like, it go to the divorced member as they may need help with kids and such.
Another way to be an invalid beneficiary is to not adhere to the rules given by the company. Although this may seem like a given, many of these rules and guidelines are supposed to be completely followed, even throughout the course of the policy period. If, for any reason, you are deemed to have crossed the line and broken a rule or guideline, the insurance company can simply use that issue or rule broken to turn a beneficiary down.
Finally, if the insured does not have a beneficiary named already, going down the list of people that should receive the benefits can cause problems for ones that attempt to claim that they are the beneficiary, as it will cause delays throughout the entire process. This is due to the life insurance company needing to follow through proper procedures, such as assessing who is next in line. Many insurances place the spouse, or next of kin, as the next available beneficiary, who would then have to be cleared by the company themselves. As such, the claim could be outright denied if you are not meeting those requirements.
How to deal with Invalid Beneficiary Denials
The best way to take care of these denials is to hire a professional and experienced FEGLI lawyer or attorney to help walk you through the steps of getting your benefits. Here at our office, we offer many services to those attempting to just get past the ordeal, and focus on getting their lives back on track and not fighting through legal paperwork. We work quickly and efficiently, and all for your case.