What to Do If Your Employer-Sponsored Life Insurance Claim Is Denied
Life insurance provided through your employer is one of the best benefits you can receive, offering financial security to your family in the event of your death. It's often inexpensive, requires no medical exam, and premiums are conveniently deducted from your paycheck. However, a life insurance claim denial can be devastating, especially when your family needs the benefits most.
While employer-sponsored life insurance is an excellent way to ensure your loved ones are taken care of, it can be a source of frustration if the insurer denies your claim. Understanding the common reasons for a denial and knowing what steps to take can help you secure the benefits your family deserves.
How Employer-Sponsored Life Insurance Works
Employer-sponsored life insurance usually offers coverage based on the employee’s salary or income. The amount of coverage can vary by employer, so it’s essential to understand your specific benefits. If you're offered life insurance through work, make sure to obtain a copy of the policy from your employer or the insurance provider to fully understand the coverage.
One of the biggest advantages of workplace life insurance is its affordability. It doesn’t require a medical exam, and premiums are automatically deducted from your paycheck. However, despite these benefits, life insurance claims can still be denied for various reasons.
Common Reasons for Denial of Employer-Sponsored Life Insurance Claims
Many life insurance claims are denied due to technicalities or mistakes that can be difficult to navigate during an already stressful time. Some of the most common reasons for denial include:
Ineligibility due to Employment Status: The employee was not working full-time or did not meet other requirements for coverage.
Retirement: The worker was retired when the claim was made.
Sick Leave: The claim is denied because the insured was on medical leave at the time of death.
Job Termination: The insured was terminated from the job and failed to port the coverage to a personal policy.
Lack of Conversion: The employee left the company without converting the policy to an individual one.
Employment Duration: The employee did not work for the company long enough to qualify for life insurance benefits.
Premium Payment Errors: The employer failed to deduct or pay the correct amount of premiums.
Paperwork Mistakes: Errors made by the employer in completing necessary documentation.
Misrepresentation: The employer incorrectly listed the employee’s eligibility or other information on the policy.
The Importance of Seeking Professional Help After a Denied Claim
Receiving a life insurance claim denial during a time of loss can be emotionally overwhelming. Many beneficiaries, feeling overwhelmed or confused, may either give up or try to handle the appeal on their own—often making mistakes in the process that can jeopardize their chances of success. In many cases, you only have one appeal, especially for claims governed under ERISA (Employee Retirement Income Security Act), which adds an additional layer of complexity.
Given the difficulty of these cases, it is crucial to consult with an experienced life insurance attorney. An attorney with at least 15 years of experience in handling ERISA-governed life insurance claims can guide you through the process, ensuring that you don’t make costly mistakes during the appeal.
Why You Need an Experienced Life Insurance Lawyer
An experienced life insurance lawyer can help you understand the denial letter, identify any legal or technical errors made by the insurer, and guide you through the appeals process. Our firm specializes in life insurance claim denials, and we have successfully helped many clients get the compensation they are entitled to.
We handle the appeal process by preparing a 100 to 200-page legal brief, which is often required in ERISA-governed claims. This thorough approach can make all the difference in securing a successful outcome and ensuring your family gets the financial support they need.
Don’t Wait—Take Action Now
If your employer-sponsored life insurance claim has been denied, don’t wait to act. The sooner you consult with a life insurance lawyer, the better your chances of reversing the denial. An experienced lawyer can review the specifics of your case, identify the best strategy for success, and help you fight for the benefits your loved one is entitled to.
Contact us today for a consultation if your life insurance claim has been denied. Let us help you navigate the process and get the money you deserve.