Having several life insurance policies may seem like a great way to provide additional security for family members, but it is not always a good idea. While it is typically legal to have multiple life insurance policies, there are circumstances where this can backfire, leading to claim denials. Insurance companies frequently deny life insurance claims for failing to disclose other policies. Our life insurance lawyers have handled these denied claims from: Prudential; MetLife; MassMutual; Nationwide; Liberty Mutual; and more.
Denial Case #1: Tanner, a 52-year-old businessman who took out three separate life insurance policies over ten years. His first policy was a $500,000 term life policy, which he obtained in his early 40s. As his business grew he added two additional policies worth $750,000 and $1,000,000 from different insurance companies. Unfortunately, when Tanner died, his family was shocked to learn that one of the claims had been denied. The insurance company found that Tanner had “failed to disclose” his second and third policies when applying for the third. Since the insurer considered this omission material misrepresentation, they refused to pay out the claim. The life insurance attorneys at our firm have dealt with claim involving: Zurich; Mutual of Omaha; Corebridge; Globe; and more. Denial Case #2: Olivia, a 45-year-old marketing executive, bought five life insurance policies from different insurers, each providing various levels of coverage. However, Olivia was unaware that some insurance companies have insurability limits, which are based on an individual’s income and financial obligations. When she died due to cancer, two of her policies were denied on the grounds that the total sum of her policies far exceeded what was justifiable based on her earnings. The insurers argued that had they known about her other policies, they would not have approved the coverage amounts. Our top life insurance law firm has handled these cases involving: TIAA; American Family; John Hancock; Ohio National; and more.
Even unintentional errors can lead to claim denials. In the case of Michelle, age 60, she simply forgot to mention a small policy she had taken out years ago when applying for a new policy with a different insurer. Since the policy amount seemed small/insignificant to her at the time, she didn’t think it was relevant. However, when she died, the new insurer investigated her application and found the omission. Having multiple life insurance policies is not a bad strategy, but failing to disclose policies, exceeding reasonable coverage limits, or misrepresenting personal information can all lead to bad outcomes. Our life insurance lawyers will fight all delayed and delayed claims, and we also handle beneficiary disputes and interpleader lawsuits. Some recent claims involved: Jackson National; Manulife; Equitable Life; AXA Life; and more.