Everyone deserves to have the chance to take care of those that are close to them, even after death. Whether it be accidental or due to someone’s fault, to have a policy in place that can ensure a bit of help for the ones left in the wake of a death of a close family member. Whether you are the beneficiary, or the insured, understanding what can possibly happen when attempting to start a claim is essential. This also means making sure you are prepared for any possible denials on the claims.
These guidelines are also extremely important when attempting to figure out how to go about FEGLI policy claims. Since these are under a company name, and not a single person’s life insurance plan, there are more stipulations and conditions that must be met. If even one of these rules are broken, it can easily mean that the benefits that were once being given are now completely negated.
Possible Reasons for Termination of Policy
There can be many different reason as to why the FEGLI claim is denied. With FEGLI, or Federal Employees Group Life Insurance, the life insurance policy is actually built into the working contract put out by the company itself. For instance, the premium payments made for such an insurance is deducted directly from the pay, just like a retirement fund or any of the other options that can be accounted for. But, since it is not an individual policy, many rules must be adherred to, from both the insured person’s side, and from the beneficiary’s side.
The most common overall reason for why a claim may be denied is because the coverage itself was terminated prior to the claim. This can come from quite a few reasons. One way is that the premiums may have gotten too much to handle, and felt that it would be better to just cut it off. If the beneficiary is not informed, and they file a claim, they may be met with a not so fun response.
This does not happen overnight, though. If a policy has been put into effect, and a beneficiary has been named, but the policy gets cancelled later on, the beneficiary will end up having only 31 days until they are completely removed from the policy. If the policy wishes to be reinstated, then a new beneficiary must be named on the policy. That means that the old beneficiary would not be able to receive any benefits, and would be denied if they filed a claim.
Denial of Beneficiary
Another possible issue that can come about that can cause termination of the contract is if the beneficiary does not pass the assessment handed out by the company. If the beneficiary that is named does not qualify, they can be immediately stripped of their benefits. This does not mean that just before the initial policy initiation. It can be at any point throughout the policy period. If, at any point, the beneficiary breaks a rule, it can be used as a reason for termination.
How to Deal with a Denial
No matter what, denials are not final. The reason given by the insurance company may very well just be there, in hopes that you do not press them any further as to why it is denied. Instead of just giving up at the first answer, find an experienced FEGLI policy lawyer or attorney that can help walk you through the jargon of law. They can help you to figure out if you have a valid case, and if you will be able to get anything from what your deceased meant to give you.
At our offices, we offer some of the most prominent and experienced lawyers available in the area. We have been able to help and assist hundreds of people that have been wrongly taken off of the policy, or denied their claims. We have helped against wrongful death claims, and even improper denial claims by the insurance companies themselves, in which the company attempts to deny the claim off of false information. Our FEGLI claim lawyers are here to help, whichever way is needed, so make sure to call us for all your FEGLI needs.