Why Are There Denied SGLI Claims?
Whenever a person has to put in a life insurance claim it is at a most distressing time of their life. For service members they have the opportunity to take out SGLI Life Insurance. This is the Servicemembers Group Life Insurance. It is a form of life insurance that is available to those who serve in many different capacities.
Those that take out this life insurance do so with a positive attitude. They perceive it as a way of protecting their loved ones financially. Most do not give any thought as to the possibility of denied SGLI Claims.
The Disappointment of Denied SGLI Claims
When a beneficiary goes about putting in a claim for the SGLI insurance they assume that this is going to be a relatively simple manner. They realize that they have to support their claim. There will be a process that they have to go through when submitting their claim. It is unlikely at this point in time that they are thinking that they may have to deal with a denied SGLI claims problem.
For the individual that this happens to they may feel that this is an isolated case. That it is only something that is happening to them. Unfortunately the statistics show that denied SGLI claims are quite common. There are many reasons for this. One is the fact that that it is a complex type of insurance and so is the claims process.
The Right Beneficiary
One of the common reasons for denied SGLI claims comes down to the right beneficiary. There can be some confusion between the spouse of the insured and the beneficiary named on the policy. In general spouses sometimes assume that the insurance policy payout will actually go to them. Therefore based on that this they will put a claim in to the insurance company.
At the same time the beneficiary knowing that they are named as such will also put in a claim. This now automatically creates denied SGL I claims. The insurance company has to know for a fact who is the actual individual entitled to the claims money. This now may become a matter for the courts to settle. It may involve a interpleader action. This is where the insurance company will turn the case over to the courts to determine the actual entitled beneficiary.
Denied SGLI Claims Regarding Divorce
Another common reason for denied SGLI claims is because of a divorce situation. This is where the claim situation can get really complex. There could be court orders involved where the insured was compelled to take out this insurance. In order to cover child and perhaps spousal support. The insured may have re-married. Now there is conflict as to who the claim is to be paid out to. Is it as a result of the previous marriage and court order. Or is it the current spouse entitled to the claim? How does this affected the beneficiary on the policy? These are all things that now become legal issues when it comes to denied SGLI claims.
Forfeiture of SGLI claims
There are a lot of stipulations that are written into life insurance policies. All too often the insured neglects to read the policy through in its entirety. They are not aware of some of the circumstances that could cause a forfeiture of claims. There are certain situations where a servicemember can create the cancellation of a claim. For example, if they have been charged with one of the different named offenses as outlined in the insurance policy.
Preventing Denied SGLI Claims
One of the most significant ways to prevent denied SGLI claims is how the insured handles the purchase of the insurance. By making sure that all of the information provided is accurate and nothing has been omitted. If the insured does their part then it can help to reduce the possibility of denied SGLI claims. But, it doesn't totally mitigate this. There are many other reasons that the insurance company can come up with reasons to try and deny the claim. If a beneficiary feels that they are entitled to the claim they should get an experience life insurance law firm to help to assist them in fighting the denied SGLI claims. SGLI laws are very complex, and most lawyers purporting to handle these can’t…our lawyers can.