State Farm is one of the most well-known insurance companies in the USA. Known for their entertaining commercials and loyal customers, they are seen as the pride and joy of the insurance world. They are reputable, and established, and cover a wide variety of options, including life insurance and car insurance.
But, this does not excuse them from being problematic when dealing with life insurance claims. Since their specialty is more along the lines of car or home insurance, life insurance policies through them can get a bit vague and murky. They tend to have very strict rules and guidelines that you must pass if you want to be able to keep your policy activated. If you are a beneficiary, you have to be careful that all of the paperwork is in the correct spot, as if it is not, they can deny your claim due to ineligible paperwork.
Some of the other reasons a denial might pop up can be due to exclusions that deal with the cause of death. Exclusions are clauses that are stipulated within the policy contract that state if the death is something other than accidental, that the insurance company will not have to pay the settlement. This can include alcohol and substance usage, and some even include dangerous activity exclusions. This is generally used when dealing with adrenaline junkies, as well as those that may have suicidal tendencies.
If these exclusions even barely apply, companies such as State Farm will attempt to fight for them as much as they can, due to the nature of an insurance company. To you, it is a full life insurance safety net. To them, it is simply another paycheck through a continuous payment. As such, they want to minimize their payouts while maximizing their intake.
If you do end up on the receiving end of a denial due to any sort of reason, don’t panic. Instead, try to contact a professional and experienced life insurance attorney. If you are able to find a reliable attorney, they can help you process any information involving the death of the policyholder, as well as the information about the denial from the insurance company. They can ensure that the insurance companies will not attempt any funny business, and that any loopholes in the contract can be closed tight, so as not to let them get an advantage. They understand that you are just wanting to get on with your life, and they will do what they can to help you.
If your State Farm Life insurance claim was denied, our life insurance lawyers will fight hard to get you the full amount of the policy.