Many people who receive a life insurance claim denial simply accept it without challenging the decision. This can happen for a variety of reasons—some may feel too drained or overwhelmed to take action, while others believe that the insurance company knows best and that there’s nothing they can do about it.
The good news is that a life insurance claim denial is not the final word. With the help of a skilled lawyer who specializes in life insurance claim denial cases, you can often reverse the decision and recover the full benefits owed to you. Best of all, many life insurance attorneys work on a contingency fee basis, meaning you won’t owe anything until your benefits are successfully recovered.
Life Insurance Denials Can Be Wrong
It’s important to understand that a denial letter from the life insurance company doesn’t necessarily mean you aren’t entitled to benefits. Life insurance companies make mistakes, or sometimes, they interpret policy terms in a way that allows them to deny a claim, even when multiple interpretations are possible. In some cases, they may even know the claim is valid but choose to deny it anyway.
Many beneficiaries receive a denial letter and assume that the insurance company’s decision is final because they wrote the policy. While this assumption is understandable, it can be dangerous. Life insurance companies frequently deny claims that should be paid, and with the right legal representation, many people have successfully overturned wrongful denials.
How Life Insurance Companies Deny Claims
Insurance companies use several justifications to deny life insurance claims. Some of the most common reasons include:
Material Misrepresentation: Claiming the insured made an incorrect or incomplete statement on the application.
Exclusions in the Policy: Arguing that the cause of death is not covered by the policy terms.
Policy In Force: Asserting that the policy was not active at the time of death.
Suicide Determinations: Classifying the death as suicide, even if no official ruling has been made.
In many cases, these denials are based on the opinion of the person investigating the claim, and the insurance company may distort facts or misinterpret the policy terms in order to deny coverage. The legal determination of what constitutes a material misstatement, whether a death qualifies as suicide, or the true meaning of policy terms can differ significantly from the conclusions drawn by the insurance company.
Fighting a Denied Life Insurance Claim
If your life insurance claim has been denied, the first step is to recognize that you don’t have to accept the insurer’s decision. You have the right to investigate the claim, review your policy’s terms, and educate yourself about the law to determine if the denial was justified. Moreover, you have the right to retain an attorney who specializes in life insurance claim denials to help you understand your rights, negotiate with the insurance company, and, if necessary, file a lawsuit.
If you’re the parent of children who would benefit from the life insurance proceeds, the personal representative of an estate holding the policy, or the trustee of a trust that owns the policy, you also have the responsibility to take action on behalf of the beneficiaries.
Once you’ve decided to challenge the denied life insurance claim, your next step should be to connect with an attorney who has experience handling these types of cases.
Contact an Experienced Life Insurance Claims Attorney
The best attorney to help with a denied life insurance benefits claim is one with the knowledge and experience to apply pressure to the insurance company and litigate your case if necessary. Our team of life insurance attorneys has a strong track record of successfully recovering life insurance benefits after denial notices. If you’re ready to fight for the benefits you deserve, schedule a free consultation today to see how we can help.