Life insurance policies and claims can get extremely messy. Depending on which policy is taken and paid for, as well as how long they have had the policy, a member can run into unexpected problems that can cause denials and delays within the claims services. When running into these problems, it is always best to consult a professional in the area of life insurance claims, but there are also some easy-to-follow steps that can help and mitigate stress and anxiety that come with battling insurance companies. Here are just a few simple things that can be done to get the process started when attempting to appeal a life insurance claim denial.
Find out the reason
To start, there is always a reason for a denial. But, some companies do not wish to disclose this information. The reason can be their own, but to deny the beneficiary a reason as to why their claim was denied is technically illegal. Not many people know it, but a beneficiary is always allowed to know of the reason as to why their claim was denied.
Finding out the reason is two-fold. For one, finding out the reason allows you to figure out the exact problem that they had used. Whether this be documentation problems, difference of named recipients written down, or other legal problems, they must be disclosed to you, as someone that was named as a beneficiary. The detail should not be vague, either. As they will generally inform you through a letter, make sure that the reason is specifically and clearly detailed.
The second reason as to why this is necessary is to make sure that both the insurance company, as well as any lawyer or other party that is involved understand that you have already asked for the reason, and did not just leave it at that. Having a reason as to why the claim was denied also helps the lawyer or attorney understand where the starting point is for a case. This is where the clear and detailed reason for denial comes into play.
Get Help Quickly
Depending on the reason for denial, there is a possibility that it can be challenged in a court of law. But, outright challenging a company over every denial is not the smartest way to go about it. Instead, check with an experienced life insurance agency or lawyer to see if the reason for denial is a valid or invalid reason, and if you would be able to challenge it.
These lawyers and attorneys can also help to answer any question that you may have, as well as help to file any necessary paperwork that might need to be completed. This includes larger appeal letters and other formal items.
Make sure if it was a denial, or a delay
One thing to not do is jump the gun. When receiving the information back from the company, they will explicitly state if it is a full denial, or if it is just a delay. Depending on what is stated by the letter, delays can be significantly sped up than if it were a complete denial of the claim.
If you have a delayed or denied life insurance claim, our life insurance attorneys will recover the full amount of the policy.