MIAMI, Dec. 9, 2020 /PRNewswire/ -- "My life insurance claim was denied!" This may be the worst news someone could receive while grieving the loss of a loved one. Whether to pay funeral expenses, a gift to a loved one, or to help cover the financial burden lost when a loved one dies, millions of Americans rely on life insurance benefits paying out after someone dies. Life insurance companies, however, may look for reasons to deny payment of claims.
Let's take a look at five common life insurance claim disputes.
Failure to disclose medical conditions
Life insurance applications often require an insured to disclose prior known medical conditions. If an insured fails to disclose every condition asked, the life insurance company may deny the claim for a material misrepresentation. However, applications may be confusing, or use technical words the insured didn't understand.
Premium payment was not received
Payment of premiums is often essential to keep a policy active. However, sometimes an insurance company denies a claim for non-payment, claiming it didn't receive payment, yet the owner may have actually mailed payment or been on auto-pay.
Ex-spouse is still listed as beneficiary
Many states enacted laws prohibiting a former spouse from benefiting from a life insurance policy after divorce in what is called a "revocation-upon-divorce" statute. Where there is no specific provision made in a marital settlement agreement, a beneficiary designation of the other spouse may be automatically void after divorce.
Last minute beneficiary changes
Where a life insurance policy owner has the right to change a beneficiary, many states allow a challenge to a beneficiary designation change if it was the result of undue influence, or the policy owner lacked the mental capacity to knowingly make the change.
No beneficiary is listed or alive
When a life insurance policy has no alive beneficiary after the insured dies, the benefits may still be payable to the policy owner. If the insured was also the policy owner, then the insured's estate may be entitled to collect the life insurance proceeds.
Life insurance policies and claims processes can be complex, and any mistake on your life insurance claim form could cause the claim to be wrongfully denied. To learn more about how a life insurance attorney could help you collect life insurance benefits if your claim was denied, check out life insurance lawyer Jason Turchin's article on Life Insurance Claims (https://www.victimaid.com/life-insurance-denial-and-disputes.html).
SOURCE Law Offices of Jason Turchin