Life insurance law is designed to protect beneficiaries by ensuring that claims are handled promptly. When a life insurance claim is filed, the insurance company is legally required to complete the investigation within 30 days of receiving the claim notice.
If additional time is needed to investigate, the insurance company must provide written notice explaining the delay and continue to update the beneficiary every 45 days. These requirements exist to prevent unnecessary financial strain on families during an already challenging time.
The Life Insurance Company Doesn’t Decide What’s Reasonable
It’s important to remember that the insurance company does not have the final say on whether a delay is reasonable. The law mandates that delays can only be justified if the investigation cannot reasonably be completed within 30 days. If the insurer continually provides excuses without progressing the claim, this is not acceptable, and the beneficiary may have grounds for action.
Too often, beneficiaries feel powerless against large insurance companies. Some insurers exploit this by stringing claimants along, hoping they will give up or become distracted by the emotional strain of the loss. However, the law is on your side, and you do not have to accept unreasonable delays.
Interest May Be Added for Unreasonable Delays
If a life insurance company is found to be unreasonably delaying a claim, they may be required not only to pay the full benefits under the policy but also interest on the amount due from the time the claim should have been paid. This can add significant value to the payout you’re owed.
Fighting Back Against Life Insurance Companies
Life insurance companies are large entities that generate millions of dollars in revenue, and they often seem to hold all the cards. Beneficiaries may feel overwhelmed and believe they can’t challenge the company’s decision. This feeling is common, especially after the death of a loved one when emotions and practical concerns are high.
Unfortunately, some insurance companies know this and take advantage of beneficiaries by unnecessarily delaying or denying life insurance claims, hoping that claimants won’t fight back. However, it’s crucial to recognize that you don’t have to accept a delayed or denied claim.
Claim the Benefits Your Loved One Intended for You
When an insurer delays or denies a life insurance claim unreasonably or in bad faith, they are not just denying benefits—they are robbing you of the financial support your loved one intended for you. The insured paid their premiums with the expectation that their family would be provided for after their passing, and you deserve to receive what was promised.
Talk to a Life Insurance Attorney Today
Life insurance law is a specialized area, and not every lawyer is equipped to handle delayed or denied life insurance claims effectively. If your life insurance claim is being delayed or denied, a skilled life insurance attorney can help protect your rights and ensure you receive the benefits you’re entitled to.
Our life insurance lawyers have extensive experience successfully handling life insurance claim cases, and we are here to help you navigate the legal complexities. If your claim is delayed or denied, take the first step toward getting the compensation you deserve. Schedule a free consultation today.