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You Can Talk with a CO Life Insurance Lawyer Today About How to Get Your Life Insurance Claim Paid

People generally purchase life insurance policies to ensure that their dependents are taken care of in the event of their death. Unfortunately, life insurance companies don’t make filing a claim easy for life insurance beneficiaries. 

Many beneficiaries find the process to be confusing, or even worse, figure out how to file their claim only to learn later that the life insurance company denied it. 

When you’re looking for a life insurance lawyer serving Colorado, our team has decades of experience helping life insurance beneficiaries get their claims paid. We will help you fight back and get the payout your loved one intended you receive.

Boonswang Law’s Life Insurance Lawyers have represented Clients throughout Colorado, Including these Cities and the Surrounding Areas:

Contact Boonswang Law Today to Discuss Your Life Insurance Claim with an Alabama Life Insurance Lawyer

Common Reasons Life Insurance Claims are Denied in Colorado

You probably know how life insurance is supposed to work – someone purchases a life insurance policy, pays premiums each month, and if they die within the policy term their beneficiaries receive the death benefit. 

It is rarely this straightforward. Like any other type of business, insurance companies only make money when they collect premiums and deny or delay payouts. They try to use these reasons, among others, to deny life insurance claims in Colorado:

Contact Boonswang Law Today to Discuss Your Case with a CO Life Insurance Lawye

Boonswang Law is here to help you during this difficult time. Put our decades of experience to work for you. Call us today at (855) 865-4335 to schedule your free, no-obligation consultation.

Misinterpretation of the Policy

We have found that life insurance companies purposely misinterpret a policy’s terms and provisions in an attempt to deny a life insurance claim. If you think this is happening to you, hire a CO life insurance attorney to fight back. We have frequently gotten our beneficiary clients paid after their claim was initially denied for this reason.

Policy Lapse

Policyholders must pay a premium each month in order to maintain life insurance coverage. If they fail to pay for any reason, this can cause coverage to lapse, resulting in subsequent claims being denied. 

While it may seem counterintuitive, a missed premium payment or even lapse may not automatically disqualify a beneficiary from receiving death benefits. Life insurance lapse and termination is highly regulated, and if the life insurance company or the employer administering the policy failed to adhere to those regulations, it may not be the fault of the policyholder that premium payments were not made. In these cases we can often get our beneficiary clients paid.

Alleged Suicide

Life insurance policies expressly list causes of death that are excluded from coverage, called “exclusions.” 

Death as a result of self-inflicted injuries is frequently excluded from coverage. However, we have found that life insurance companies will attempt to wrongfully classify someone’s death as a suicide so that they can deny the beneficiary’s claim. In these cases, we thoroughly investigate the cause of death and if we can prove the death was not self-inflicted, we can get our beneficiary clients paid.

Alleged Misrepresentation

A policyholder must disclose all personal information, including health and lifestyle habits, on their initial application for life insurance and medical questionnaire. Life insurance adjusters base the premiums payment on this information, using it to calculate the risk to them that the policyholder will die within the policy term. 

If a policyholder makes a mistake or omits information and dies within the policy term, the life insurance company will retroactively cancel the policy, claiming that the policyholder misrepresented themselves, and deny beneficiaries’ claims. 

Boonswang Law has decades of experience with types of cases and can help you if the life insurance company denies your claim for this reason.

Insurance Scams & Bad Faith: What to Watch Out For

There are instances where your insurance company may be acting in bad faith. Ultimately, insurance companies are businesses trying to make money, and some may commit scams to avoid fairly compensating your family. 

There are a few bad faith behaviors you should be aware of to protect your beneficiaries and guarantee they are able to access their benefits upon your death.

Indexed Universal Life Insurance

When searching for life insurance, companies may pitch you an indexed universal life insurance (IUL) policy. These policies can be confusing and complex, and are often ways for companies to commit misleading or fraudulent behavior.

IUL policies allow the policyholder to grow their cash value by contributing a portion toward an equity index account like a S&P 500 or NASDAQ. While it may seem like a great offer, these policies may not be the best option for people who are older or those without disposable income.

Churning Scams

An insurance agent may commit a churning scam by using falsified data to talk policyholders into buying a new policy. They’ll claim that this new policy offers lower rates or premiums, but the reality is that churning takes savings from an existing policy and uses it as a loan to purchase the new policy. 

This is a way for agents to earn commission on selling policies to those who don’t need them, and older policyholders who have held their policies for a long time are usually the victims of churning scams. Every time a payment is made on the new policy, the value of the original policy decreases, eventually leaving you with nothing and causing your coverage to lapse.

Insurance Bad Faith

Life insurance companies may delay payments, deny claims without reasonable cause, or offer compensation that is below what your beneficiaries are entitled to. These are all acts of bad faith that companies will commit as a way to save money. Speak with a life insurance lawyer in Colorado today to understand your rights and avoid insurance scams.

What You Can Expect From the CO Life Insurance Lawyers at Boonswang Law

Life insurance policies can be confusing, especially when you are dealing with shady agents or unfair denials. Rather than struggling to understand your policy on your own, work with a trusted life insurance lawyer in Colorado like Boonswang Law.

Our team can assist you with:

  • Reviewing your policy and explaining coverage and exclusions to you
  • Reviewing denial letters and any other documentation you’ve received from the life insurance company 
  • Investigating the allegations made by the life insurance company in an attempt to deny your claim
  • Handling all negotiations with the life insurance company’s team of lawyers
  • Vigorously litigating your claim in court if the life insurance company won’t pay

Common Questions Regarding Colorado Life Insurance Benefits

What Happens When a Minor is the Designated Life Insurance Beneficiary?

A minor cannot be the direct recipient of life insurance death benefits. If the beneficiary is still a minor when the policyholder dies, the courts will usually choose a custodian to oversee the minor beneficiary’s death benefits. However, nothing can really be done to stop the custodian from using the minor’s payout for their own purposes.

When a policyholder wants a minor to receive the death benefit, they set up a trust, designating the minor as the beneficiary of the trust, and appointing a trustee to administer the trust and act as the minor’s fiduciary. We suggest hiring an estate planning attorney to help you understand the legalities of setting up a trust.

If the primary beneficiary dies before the policyholder and the policyholder did not designate a secondary or contingent beneficiary, the benefits may pay to the policyholder’s estate.

Sixty days if the policy is group life insurance through an employer. Otherwise, it is prudent to file your claim denial dispute as soon as possible after getting the denial letter in order to have the best chance of finding and preserving evidence supporting payment of your life insurance claim. Having a life insurance lawyer handle your dispute is highly recommended so you can feel confident that everything is being done correctly.

Only the policyholder can legally change the beneficiary on a life insurance policy. In some instances, a person who has power of attorney over the policyholder may make changes to the policy.

There is no nationwide database that lists every person who has purchased a life insurance policy, so you will have to investigate on your own. Contact their employer to ask if they offered group life insurance coverage as a benefit of working there. Also, look through old documents in search of life insurance paperwork and review bank statements to locate evidence of paid insurance premiums.

Yes! It is surprisingly common for policyholders to list only one of their children as a beneficiary on their life insurance policy. Although the beneficiary will not be able to add their siblings to the policy after the policyholder’s death, there’s nothing stopping them from sharing their benefits once the benefits pay out.

First, you should know that policyholders can change the beneficiary designation at any time as long as they are of sound mind and not under duress when they make the change. However, if you suspect fraud, incapacity, or duress, you can contest the beneficiary designation. These cases are notoriously difficult to prove, so contact an experienced CO life insurance attorney for help.

Perhaps! Life insurance policies typically have a grace period for unpaid premiums, so you may still be able to receive death benefits even if the policyholder missed a payment. Also, in cases where the lapse was not the fault of the policyholder, we have been able to get our beneficiary clients paid. 

If you are a beneficiary of a lapsed life insurance policy, the CO life insurance lawyers at Boonswang Law can help you understand what your rights are.

Not under any circumstances. The policyholder generally is the only person who can make changes to the policy. If you receive paperwork showing that the beneficiary changed after the policyholder’s death, it is most likely fraudulent.

With a divorced or remarried policyholder, confusion may arise over who gets what, and this is governed by state law and varies state-to-state. A CO life insurance lawyer can explain what you’re entitled to as the policyholder’s spouse or former spouse.