Receiving a denial from a company can be extremely disheartening. This is usually because the denial may come at a time that may be a bit low, as someone may have lost a dear family member or close kin. But, the worst is to hear that the life insurance, paid by the deceased member themself, is being denied solely based off of the fact that the procedures of the company were not followed to the letter. Because of this, many beneficiaries tend to be cheated out of their benefits, and rightly so. There are a few options and processes that can be gone through to help get things back on track to getting the benefits that one rightly deserves as a beneficiary.
Differences between Delays and Denials
One major point to to keep in mind is that the reasoning given changes based on whether it is a delay in the claim, or if it is a full denial of the claim. Different portions of the policy holds different weight, and can sometimes be remedied quickly. For such things like debating the length of the policy from time issued to time of death, these will generally only cause delays with the acceptance of the claim. For others, it can be extremely difficult.
How to Deal with different policy problems
There are quite a few issues that can come about based solely around procedural errors. From simple things like incorrect forms, to not following the proper procedures to claim yourself as a proper beneficiary, the steps and hoops that you have to jump through must be properly passed, or else you will get denied.
One way to deal with such policy problems is to thoroughly read through the insurance policy that you have been named the beneficiary of. Although this is usually done before you send in a claim, it is something that does need to be stated. Making sure that the entire policy by the insurance company is read top to bottom ensures that there are no surprise factors or clauses that can be sprung at the claim status point. When reading through the policy, also having someone else to help look over it isn’t a bad idea. However, the person that should be reading over it as well should usually be an experienced member of law that has a long history of sorting through policies of this nature, so that they know what to look for.
Sometimes, a claim will be denied or delayed due to the contestability period. This occurs when the insured dies before the two year date, which is used to ensure that the insured wasn’t just attempting to get a bit of money before they pass on. To ensure this doesn’t become a problem, make sure there are no falsities on the paperwork. Even if the incorrect or falsified information has no correlation to the cause of death, it can still be used as a reason for denial. As such, make sure all information is accurate, and the truth.
Lastly, make sure that the policy for the insurance covers a wide array of causes for death. Some companies will attempt to limit these causes to mitigate their own risk factors. For them, this is their job and source of income. But for you, this is your legacy. As such, ensure that many causes for death are listed, and know what ones are being covered, so that they cannot dispute it later on.
If you have a delayed or denied life insurance claim, our life insurance lawyers will get you the full amount of the policy.