Portable coverage allows individuals to retain the same level of life insurance coverage when they change employers or retire. While employees are typically covered under group life insurance plans during their employment, these plans may no longer be available once they stop working or switch jobs. In such cases, individuals can request to "port" their coverage, effectively transferring their existing coverage to an individual policy with similar protections.
The Process of Porting Life Insurance Coverage
When opting for portable coverage, the insured must complete a portable application, which resembles a standard life insurance application. Some portable coverage applications may not include health-related questions, which can lead to confusion about the scope of the coverage. However, it's important to understand that portable coverage, like any life insurance policy, may still be contested by the insurance company if it has not been in effect for at least two years before the insured’s death. If you would like help with denied life insurance in Minnesota call us.
Why Portable Coverage Claims Are Denied
The process of obtaining portable coverage can sometimes be unclear, and life insurance companies often use ambiguity in the policy to deny claims. This can be especially frustrating for beneficiaries who were assured their coverage would continue seamlessly after a job change or retirement. If your loved one’s portable coverage was initially approved but the insurer refuses to honor the claim following their death, it’s essential to seek experienced legal help.
Our life insurance attorneys specialize in advocating for beneficiaries who face wrongful claim denials. We have a proven track record of recovering benefits for clients through both litigation and out-of-court settlements. Our legal team is adept at holding insurance companies accountable for unfair practices, such as denying claims based on unclear or misleading policy language.
Case Example: Wrongful Denial of Portable Coverage
Insurance companies often use questionable justifications to deny life insurance claims, even when the death was unrelated to any policy exclusions. For example, a recent case involved a widow who sued an insurance company for wrongfully denying her claim after her husband was shot in the back. The insurer refused to pay the claim, citing her husband’s pre-existing condition of Hepatitis C, which had no connection to the cause of his death. The widow argued that the manner of death—an accidental shooting—was completely unrelated to any pre-existing condition and that the policy did not specify exclusions based on the manner of death.
This case highlights a common issue with insurance companies’ claim denials: they often attempt to deny claims based on unrelated pre-existing conditions or unclear policy language. The law generally states that the cause of death should not be a determining factor in a claim denial if the manner of death is not specifically excluded in the policy.
The Two-Year Contestability Period
Insurance companies typically have a two-year contestability period from the date the policy is issued. During this period, the insurer can rescind or void the policy if they discover that the policyholder misrepresented their health information on the application. However, if the policyholder passes away after the two-year period, the insurer can no longer contest the claim based on application discrepancies, even if they discover misstatements later.
Seeking Legal Help for Denied Portable Coverage Claims
If your claim has been denied under a portable coverage policy, it's crucial to have an experienced life insurance attorney by your side. Denied claims often involve bad faith insurance practices, where the insurance company is acting unfairly or unlawfully to avoid paying benefits. Our life insurance attorneys specialize in handling such cases and can help you fight back against these unfair practices.
Why Choose Our Life Insurance Attorneys?
We have a 100% success rate in handling portable coverage life insurance claims and are committed to getting you the benefits you are entitled to. Our team will thoroughly review your case, hold the insurance company accountable, and fight for your rights—whether through settlement negotiations or litigation.
If your portable coverage claim has been wrongfully denied, contact our experienced life insurance attorneys for a free consultation. We’ll help you understand your legal options and work to recover the benefits you deserve.