The time period immediately following the death of a loved one is typically filled with grief and confusion for the survivors. Along with the emotional impact that a death has on surviving family members and loved ones, concerns about financial stability often arise if the decedent’s income was necessary to maintain the family’s financial well-being. If you are the named beneficiary of a life insurance policy covering the decedent, you will need to file a claim as soon as possible.
If your life insurance claims process progresses as anticipated, you will receive the much-needed policy proceeds relatively quickly. If the claim is delayed or denied, however, you should contact an Orlando life insurance attorney at Malik Law right away. The team at Malik Law understands that surviving family members often depend on life insurance proceeds to cover funeral and burial expenses as well as basic living expenses. When a problem arises with a claim, it can add considerable financial stress at a time when you are already struggling with the loss of a loved one. Instead of trying to navigate the claims process alone, contact an Orlando life insurance attorney at Malik Law today by calling 407-500-1000 so we can discuss your legal options.
Life Insurance Basics
A life insurance policy is a legal agreement in which an insurer promises to pay money to a named recipient after the insured person dies. You may purchase insurance that covers your own life or purchase coverage on someone else, such as a spouse or business partner, when you have a legitimate financial interest. The payout is designed to ease the economic burden that follows a death, helping to handle burial costs, debts, and ongoing expenses.
Several forms of life insurance coverage are available. Term insurance provides protection for a set period, often 10 to 30 years, with level premiums and no savings feature. Permanent life insurance options last for life and include a value accumulation component. Whole life offers fixed premiums and a guaranteed cash reserve. Universal life provides more flexibility, allowing you to adjust payments and sometimes the benefit amount while building cash value. Variable life links the policy’s savings portion to investment choices, which can increase or decrease value depending on market performance. Final expense coverage is a smaller policy intended primarily to cover funeral and related end-of-life costs.
Common Life Insurance Claim Issues
When you file a claim for life insurance proceeds, you expect to receive the benefits to which you are entitled in a timely manner. Unfortunately, there are several common issues that could cause your claim to be delayed or denied, such as:
- Coverage Termination for Nonpayment: If required premiums were missed and the contract ended before death occurred, the carrier may refuse payment.
- Undisclosed Medical or Personal History: If important facts were omitted when the policy was issued, the insurance company may try to deny payment of benefits.
- Review During the Contestability Window: Most policies allow the company to scrutinize the application during the first two years, which can cause a delay if the insured dies during that time frame.
- Paperwork Problems: Missing or inaccurate forms and documents can delay the processing of a claim.
- Policy Exclusions: If an exclusion applies, the insurance company will try to avoid paying out benefits. Common exclusions include suicide, fraud, unlawful conduct, and undisclosed hazardous conduct.
How an Orlando Life Insurance Attorney Can Help You with a Denied Claim
If you receive notification that your life insurance claim was denied, or if the claim has been unreasonably delayed, it is in your best interest to consult with an Orlando life insurance attorney at Malik Law as soon as possible. Having one of our experienced attorneys on your side ensures that your beneficiary rights are protected and increases the likelihood that your claim will be paid in full without further delay. Although every claim is unique, there are several ways in which the team at Malik Law may be able to help you if your life insurance claim has been delayed or denied, including:
- Analyzing the Policy: Insurance policies are typically chocked full of legalese that the average person never reads. An attorney will thoroughly analyze your policy to determine if your claim is valid and if there are any legitimate reasons to deny the claim.
- Reviewing the Denial Letter: If the claim was denied, you should have received a written explanation outlining why it was denied. Your attorney will review the letter and analyze the validity of the reason given for the denial.
- Identifying Bad Faith: The insurance company has a legal obligation to act honestly and fairly when reviewing and processing your claim. If they act in “bad faith,” you could be entitled to damages. An experienced attorney can identify when an insurance company is acting in bad faith and pursue damages on your behalf.
- Gathering Evidence: Evidence may be needed to refute the denial, such as proof that the premiums never lapsed, a certified death certificate to prove that the insured passed away, or a coroner’s report proving the cause of death.
- Submitting Documents: Insurance companies often inundate a beneficiary with requests for forms and documents, hoping that the beneficiary will eventually give up and not pursue the claim. We will make sure that all forms and documents are completed correctly and submitted to help move your claim along.
- Appealing a Denial: You have a right to appeal a denial of claim; however, strict deadlines apply and the appeals process can be confusing. Your attorney will make sure that an appeal is prepared and filed within the applicable time limit to protect your rights.
- Negotiating a Settlement: Your Orlando life insurance attorney will attempt to negotiate an out-of-court settlement if there is a legitimate issue in dispute. If a favorable settlement is not forthcoming, however, we will be prepared to litigate your claim in court.
- Litigating the Claim: If filing a lawsuit is necessary to get your claim paid in full, we will zealously advocate on your behalf throughout the litigation process.
If your claim for life insurance death benefits was denied or has been delayed without good cause, contact an experienced Orlando life insurance attorney at Malik Law to ensure that your rights are protected. Contact the team at Malik Law today by calling 407-500-1000 so we can discuss your legal options.
