What You Need to Know About Denied FEGI Claims
FEGLI stands for Federal Employees Group Life Insurance. Many federal employees opt into this offering of life insurance. It gives them peace of mind in knowing that their loved one's financial needs are going to be taking care of. In the event of the death of the insured. Many also feel comfortable with this a type of insurance because it is a group life insurance. Most feel that if everyone is opting into this that it must be a good program. Another purpose that it serves is that it is convenient. Meaning that people do not have to take the time to shop around for life insurance coverage. All of these are good factors for FEGLI insurance. One major factor that is not ideal is when the beneficiaries are faced with Denied FEGLI Claims.
The Credibility Of FEGI Insurance
This particular form of life insurance is well known to those in federal employment. It is an insurance that they trust and it is a special type of insurance. Special to the point where it has its own insurance act that governs it. It is known to be the most major group life insurance in the US specifically for Federal employees.
Why Do Denied FEGLI Claims Exist?
A beneficiary expects that with well-known insurance coverage such as this, that producing a claim would be hassle free. It is not uncommon for a beneficiary to end up with Denied FEGLI Claims. There are several different reasons why this can happen. For individuals that are taking out this life insurance they really need to be aware of what the potential pitfalls could be for the beneficiary.
Change Of Beneficiary
There are times when the federal employee wants to change their beneficiary on their FEGLI policy. There is a specific format for doing this. If this format is not followed exactly as required then it can lead to problems for the beneficiary when it comes to Denied FEGLI Claims. The law can change at any time for insurance policies. It is up to the insured to know exactly what the current rules are when doing a beneficiary change for the FEGLI policy.
No Beneficiary Named
It is always wise for a insured to name a beneficiary for their FEGLI life insurance policy. However, on occasion an insured may choose not to do this. This creates a great deal of problems upon the death of the insured. The policy will need to be paid out to someone. Individuals that are applying for the claim may end up with Denied FEGLI Claims because they were not named as the beneficiary. There are laws that deal with this situation but that they are not straightforward. As a result there can be disputes among the beneficiaries as to who the money should go to.
Change Of Beneficiary In Divorce Proceedings
Often individuals that are divorced have many different responsibilities that they must to deal with. One of the things that can be easily forgotten is the change of beneficiary. In the event the insured remarries there can be a conflict over this insurance. This can make it difficult and can end up in Denied FEGLI Claims. Once this happens then there is going to be a long process for getting it sorted out. Most often it will involve having to hire experience life insurance lawyers that specialize in this type of insurance denial. It can be a tough process without a top life insurance law firm. However, due to the large amount that most of these insurance policies consist of it may be well worth the fight.
It should never adjust be assumed that because there is a Denied FEGLI Claims situation that the insurance company is automatically right. Every insurance company is going to thoroughly scrutinize any payment that that they have to make. It doesn't matter how credible the insurance company is, they have the mandate to make sure they are releasing money to the right people. They also have the responsibility of making sure that the insurance policy is valid. It is up to the insured to make sure that they provide all of the proper information so that there will not be any issues such as Denied FEGI Claims. Our life insurance lawyers resolve these claims almost every single time.