We are happy to have resolved a $132,000 denied life insurance claim.
Could an employee taking leave or being terminated be the basis for denial of a life insurance claim?
Taking leave or termination of an employee would generally not be a basis for the denial of a life insurance claim, unless the specific terms and conditions of the policy explicitly exclude coverage for such circumstances.
If the policy provides coverage for death due to any cause, and the employee dies during the coverage period, then the beneficiaries of the policy should be entitled to receive the death benefit, regardless of whether the insured was on leave or had been terminated.
However, it is possible that an insurance company could try to deny a claim on the basis of fraud, misrepresentation, or non-disclosure of material information during the underwriting process. For example, if the employee knew that they had a terminal illness at the time they applied for the policy but failed to disclose it, the insurance company could argue that the policy was obtained under false pretenses and deny the claim.
If an insurance company denies a claim based on fraud, misrepresentation, or non-disclosure, the policyholder or their beneficiaries may contest the denial by providing evidence that the insured did not engage in any fraudulent or deceptive conduct during the underwriting process. This evidence may include medical records, witness statements, or expert testimony. It may be helpful to seek the assistance of a life insurance lawyer from our law firm to navigate the claims process and contest the denial.
Call us today if your life insurance claim has been denied. We will fight and win!