A benefit that can assist your loved ones in coping with the financial fallout of your passing is life insurance. When an insured person passes away, life insurance gives their dependents financial support.
A life insurance policy’s death benefit is a tax-free lump-sum payment that can replace your income so your family can continue to live comfortably and take care of your dependents or children. Unfortunately, some life insurance claims are rejected by insurance companies, which put bereaved family members in a challenging situation.
Here are the situations when the need arises for a life insurance denial lawyer In New York.
Application Misinterpretation
The insurance provider uses elements to calculate the applicant’s mortality risk. The insurer will base its decisions on whether or not to insure you, the benefit amount that will be made available to you, and the monthly premium you will be required to pay to assess your risk factors. The insurance company may refuse to pay your beneficiary’s life insurance payment after you pass away if you falsely provide any necessary information.
Exclusionary Terms
The conditions of the life insurance policy will outline the situations in which benefits won’t be paid. Several instances include:
- Suicide: Some policies stipulate that benefits won’t be paid if the suicide happens within a specified time range. This deters people from buying insurance when they are considering suicide and want to ensure the financial security of loved ones.
- Illegal Activities: Most policies didn’t cover situations when someone died while committing a crime. Once more, it is important to look into any charges of criminal behavior since there can be extenuating circumstances that exempt the conduct from the exclusionary language.
- Acts of War: This exclusion is meant to reject the claim for civilian deaths resulting from armed conflict or acts of war.
These phrases are frequently vaguely written and open to interpretation. A life insurance denial lawyer In New York can help analyze the refusal if an insurer relies on a contract exclusion.
Missed Premium Payments
Due to the non-payment of premiums, the insurance companies deny such claims because the policy would not have been in effect at the time of the policyholder’s death. Therefore, to maintain active insurance coverage, you must keep up with the regular premium payments.
Expired Term Life Insurance
If you pass away after the term has ended, no life insurance benefits will be paid. You can either convert the policy to permanent coverage after the period has ended or request a policy renewal for a subsequent time at a higher cost.
Numerous factors, such as inaccurate information on the application, late premium payments, and term life insurance that has expired, can lead to the denial of life insurance claims. Before assuming that no money is owed when a life insurance policy is denied, you must comprehend the terms of the contract. Having a life insurance denial lawyer In New York evaluate the denial is a wonderful place to start if the life insurance benefit is denied.
