What to Do if a Life Insurance Claim is Denied Due to a Lapsed Policy
If the life insurance claim is denied because of a lapsed policy, don’t give up. There are steps that can be taken to challenge the denial and secure the benefits owed to the beneficiaries:
Review the Policy: Carefully examine the terms and conditions of the life insurance policy, including the grace period, the contestability period, and any provisions for reinstatement.
Check the Premium Payment History: Ensure that the premiums were paid correctly and on time, and that the life insurance company followed the necessary procedures for sending premium due notices.
Request Documentation: Ask the insurance company for a written explanation of the denial. Request copies of any communications, including premium notices, and make sure that the insurer complied with all requirements.
Appeal the Denial: If there was an error in the insurer’s handling of the claim, or if the insurer did not meet their obligations, you may have grounds to file an appeal. Work with an attorney to review the situation and build a strong case.
Legal Assistance: If the claim denial is upheld, you may need to take legal action. Our experienced life insurance attorneys specialize in handling cases of lapsed policy denials and delayed or denied life insurance claims. We will fight to ensure that the beneficiaries receive the death benefits they are entitled to.
Takeaway: Don't Let Lapses in Coverage Stand in Your Way
A lapse in life insurance coverage can be a serious setback, but there are options available to remedy the situation. Whether you're in the midst of a grace period, seeking reinstatement, or fighting a denied claim, understanding your rights and acting promptly can make all the difference.
If you’re facing a life insurance claim denial due to non-payment of premiums or a lapse in coverage, it’s important to seek legal advice. Our life insurance attorneys are dedicated to advocating for beneficiaries and ensuring they receive the benefits owed to them. We will fight any denied life insurance claim and help navigate through the complex process to get the rightful payout.
FAQ Section:
What happens if a life insurance policy lapses due to missed premiums?
If premiums are missed, the insurance policy may lapse, meaning the insurer is no longer obligated to pay out the death benefit. However, many policies offer a grace period during which the insured can catch up on payments, allowing the policy to remain active.
Can life insurance be reinstated after a lapse?
Yes, most policies can be reinstated if premiums are paid with interest and the insured undergoes a medical exam. However, the reinstated policy may start a new contestability period.
How long is the grace period for a life insurance policy?
The grace period for life insurance policies typically ranges from 30 to 60 days, depending on the insurer and the policy terms.
Can a life insurance claim be denied during the grace period?
A claim may not be denied if the insured dies during the grace period. However, any missed premiums will be deducted from the death benefit.
What should I do if I receive a denial for a life insurance claim due to a lapse?
First, review the policy terms, check for missed premium payments, and request documentation from the insurer. If necessary, consider filing an appeal or consulting with an attorney.
What is a premium due notice, and why is it important?
A premium due notice is sent by the insurer to inform the policyholder that a premium is overdue. If the insurer fails to send this notice properly, the beneficiary may challenge a denial based on the lapse.
Can I still receive the death benefit if the policy lapsed due to non-payment?
It’s possible to receive the death benefit if the policy was still within the grace period or if the policy is reinstated. However, missed premiums will be deducted from the payout.
How can a life insurance attorney help with a denied claim?
An attorney can help review the policy, challenge the denial, and provide legal representation to ensure the beneficiary receives the payout. Legal action may be necessary if the insurer wrongfully denies the claim.