Dealing with a Denied FEGLI Life Insurance Claim
No matter what you do in life, everyone should be allowed to be covered in case of a problematic death. You should always be able to provide for your family, or close relatives, in case you are not available to take care of them. Many people will usually go for a general policy that covers a wide range of options. However, those will usually come with quite a high premium payment each month or year. As such, some federal companies and businesses allow employees to get a Federal Employees Group Life Insurance Policy. There are plenty of pros and cons to this policy, some of which can be extremely difficult to understand. As such, we hope to bring a bit of information to this more intricate policy choice.
What is a FEGLI?
To start with, FEGLI is not your typical kind of insurance. Most groups that focus primarily on life insurance for individuals tend to help cover either partial moments in their lives, as well as entire life coverage. These are tailor made for specific individuals, and don’t usually blanket an entire company. However, the Federal Employees Group Life Insurance is generally a life insurance that helps those that aren’t able to afford the larger full life insurance policies, but still wish to be covered.
FEGLI generally help to insure federal employees with a bare bones basic life insurance policy. These policies don’t usually cover much, and are not able to be used to create cash value or any type of backing. You can get a few options that allow you to cover such things as basic accidental deaths and other such problems. This can include accidental dismemberment, and some other different options, although you have to generally ask the company for those extra options.
What are the stipulations?
There are quite a few problematic details and issues that come about when filing for the FEGLI. As it is a group benefits package, you must make sure that you are able to pass their qualifications, as well as their requirements. Many companies do rigorous background checks, as well as credit checks and the like to ensure that the employee attempting to apply for the policy isn’t going to compromise the insurance group or the company.
How can these Affect Claims?
One of the downsides to attempting to file a claim can be the problematic issue that the rules were not followed. With companies, they will attempt to find any and all ways possible to ensure that they do not have to pay out any sort of amount to the beneficiaries. As much as everyone wishes that they could keep each other in their good graces, it comes more often than not that a company must look after their own interests. To them, insurance and employee components are just a business and a form of investments. For you, it is your legacy and livelihood.
One of the most common problems that can come up that can cause a denial or delay in the claim is the cause of death. The reason for this is that FEGLI policies will almost always need to be either accidental. This is a surefire way for them to clear the problematic issue of suicides or dangerous activities, such as rock climbing or skydiving. Both of these activities are considered dangerous, sports, which would not fall under the accidental death guideline in the policy listing.
Another problem is properly naming and listing a beneficiary. Although it doesn’t seem like this should be an issue, if the policy holder did not properly list the beneficiary on the policy, it can be disputed between every one of the other possible beneficiaries. This can happen in a few different ways. For one, it can occur if the beneficiary is the estate or other such entities, the benefits of the life insurance policy then are used to cover any end bills or debts that the insured might leave behind. This also means that the beneficiary cannot be passed off, and would have to go through a lengthy claims and acceptance of the changes brought forward by the possible beneficiaries claiming to be entitled to the claim.
How to Deal with Denials
The best way to handle denials of FEGLI claims is to always find the best lawyer or attorney. Luckily, we have some of the best lawyers in the city, many that are quite experienced with FEGLI claims. They can help you circumnavigate the loopholes and jargon that can be thrown about in an attempt to disorientate and confuse you. They will help to keep you safe from possible false claims by the company, and make sure you get the paper benefits that you are entitled to.