Hundreds of people buy life insurance policies within each week or month. They wish to purchase the insurance in hopes that they will be insured and covered in case something happens to them unexpectedly. This is understandable, as quite a few different insurance policies will generally allow policyholders to get immediate benefits after the purchase.
This is not true when attempting to work with life insurance policies. Since the policy itself takes time to be thoroughly inspected and taken care of, it is not always guaranteed that the benefits will be immediately applied if the death of the policyholder occur quickly.
Denial due to Activation Period
There do come times when the effective date of a policy and the time of the first premium payment do not match. This is the standard norm for many insurance companies, as they do wish to stop any possible fraudulent activities, such as a death on someone who already knows that they will die soon. But, this harms those that may be caught in the crossfire in an unexpected situation.
In a situation where the policyholder does die prior to the activation date of the policy, but after the initial premium payment has been made, insurance companies will usually attempt to deny the coverage, stating that the application has not been approved just yet, so they will not have to payout since the policyholder was not yet active.
This may seem shady, but this practice is being challenged throughout the states. Currently, many states are enforcing the practice that the activated date of the policy is correlated with the first collection of the premium payment. But, some cases still slip through, so it is important that, if you are caught in this situation, to seek out professional help.
How Interim Coverage Helps
As stated above, the practice of having a basic coverage at the beginning of the contract is known as interim coverage. This type of coverage is fairly new, so many insurance companies still attempt to challenge these claims, in hopes that they do not have to payout for a fairly recent death after the semi-activation of a policy.
In these cases, it is best to look for an experienced life insurance claim lawyer. If you have been denied or delayed due to the time of death in correlation to the effective date, these attorneys can help to iron out the folds of murky jargon, and ensure that your case does not go unheard and unkept. They know that you deserve to be treated as a human being, and not as another bank account, and that you deserve proper coverage.
Having trouble finding the right lawyers? Don’t know where to start looking? Our team of experienced denied life insurance claim lawyers and attorneys are the best place to start. We have helped countless individuals get the full amount of the policy to which they are entitled.