Reasons Your Life Insurance Company May Deny Your Claim for Benefits

Reasons Life Insurance Claims Are DeniedPurchasing life insurance is way of ensuring that your loved ones will be provided for when you pass away. Unfortunately, that insurance policy isn’t always a guarantee that your loved ones will receive the money they should.

Processing a Life Insurance Claim

When a claim for life insurance benefits is filed, the process is generally as follows:

  • The claim is filed with a copy of the death certificate and all supporting documentation, such as an autopsy report, toxicology report, police report, etc.
  • A claim examiner is assigned to review the claim. If additional documentation is needed, the claim examiner must inform the beneficiary as soon as possible.
  • Within 30 days of receiving all necessary documentation, the insurance company makes a decision to pay or delay the claim.

A claim may be denied for many reasons, but a denial is not the end of the matter. A life insurance denial attorney in Houston can help you fight the insurance company to get the benefits you are entitled to.

Why Was My Life Insurance Claim Denied?

If a life insurance company has denied your claim for benefits, they must provide you with the reason for doing so. The most common reasons for a denial are:

Material Misrepresentations: If the insurance company believes the insured misrepresented information that would affect the level of risk the company is taking on, the company may deny the claim. To put it more simply, if the insured person lied or withheld information when applying for coverage, a claim could be denied. This reason for denial is more common if the insured died during the first 2 years of the policy, known as the “contestability period.”

Employer Doesn’t Submit Documentation: If your life insurance policy is obtained through your job, you trust that your employer will properly submit all the necessary paperwork. Unfortunately, this sometimes doesn’t happen, and the insurance company will deny the claim. The good news is you can likely still recover your benefits with help from a life insurance denial lawyer.

Non-payment of premiums: If the insured has missed payments on the policy, the insurance company may deny the claim. When representing a beneficiary in this situation, the life insurance denial attorneys at Powers Law Firm will look at whether the insurance company sent notices of premiums due to the correct address and whether those notices clearly gave warning of a pending lapse in benefits. If not, then the beneficiary may be able to recover the benefits.

Type of death not covered: In the past, life insurance companies added many different exclusions to their policies, including the type of death. For example, if the insured took his own life or died while engaged in a dangerous hobby such as skydiving, the insurance company may have denied the claim. This practice is not as common today but may still be in place in some policies.

Getting Help With Life Insurance Claim Denials

If you are a beneficiary who has experienced a life insurance denial, it’s important that you not give up on getting your benefits. Contact Powers Law Firm today to get immediate assistance from a Houston life insurance denial attorney who understands the legal issues you are facing.