Life Insurance Policies can be some of the most costly policies available on the market. This is due to how much the insurance policy can give in benefits when claimed by a beneficiary, as it is essentially a back-up plan after the policy holder’s death. Depending on what the policy holder wished to have covered, the price and premium payments can skyrocket and get out of hand. As such, many people that work for a company may wish to get an Employer Life Insurance Policy.
Employer Life Insurance Policies can come in many different forms. A certain style of Employer Insurance can be seen when talking about FEGLI, or Federal Employees Group Life insurance. But, many employers also have their own private insurance policies that they allow company employees to be based under. This has many different benefits, as well as much stronger stipulations cast on the policy holder.
The Ups and Downs of Company Insurance
There are quite a few reasons as to why getting covered by an employer’s life insurance policy is more beneficial to an employee. Just a few reasons would be:
- Low premiums
- Blanket covering
- Ease of payments
- Less Hassle
Many companies will allow an employee to hold a policy under the company banner at a reduced rate. This also helps to manage the premiums, as the payments would not be charged, but instead automatically withdrawn from a paycheck, if the employee so wishes. This would help those that may be forgetful to take care of their payments on time, and would not have to stress about whether or not their policy covers a certain time frame or not.
There are quite a few problems that do occur with this system, though. Mainly, that the stipulations in regards to what can and cannot be done are much higher than those given by a private insurance company as a personal policy. For instance, just some of the extra reasons that a denial may occur is if you break such regulatory clauses such as:
- Not working Full-Time
- Fired from the job
- Hadn’t worked long enough at the Company
- Retired from the Company
These are just a few of them, and are things that are not always put as constraints when working with an individual life insurance company. These are put in place so that the company, although they offer a much more affordable plan, can regulate and cap how much they will have to pay out in case of unexpected events.
Challenging Murky Denials
As stated above, some of the stipulations placed can seem very grey. Such things as not having worked for the company long enough, not being hired full-time, as well as being retired from the company can all be questioned heavily.
Because of this, always make sure to hire an experienced Life Insurance Attorney. With an attorney that specializes in life insurance claims, they would be able to ensure that you have a fair case, as well as make sure that your case itself is air-tight. At our offices, we have plenty of experienced lawyers that will be happy and willing to help walk you through the legal paperwork and possible tricks that the company may try to pull. We fight for your livelihood, and for you to not be another paycheck for the company.