Trust the Experienced Colorado Life Insurance Lawyers at Boonswang Law
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, they figure out how to file their claim only to learn later that the life insurance company denied it.
Our life insurance attorneyss have 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:
- Colorado Springs
- Fort Collins
- Highlands Ranch
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:
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.
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 are 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.
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.
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 paid 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.
READY TO TALK TO AN ATTORNEY ABOUT YOUR LIFE INSURANCE BENEFITS?
What You Can Expect From the CO Life Insurance Lawyers at Boonswang Law
It is likely you have never worked with a life insurance lawyer before, and you may not know what to expect. Rather than struggle to handle your claim on your own, experience these benefits, among others, when you work with Boonswang Law:
- We will review the applicable policy and explain coverage and exclusions to you
- We will review denial letters and any other documentation you’ve received from the life insurance company
- We will thoroughly investigate the allegations made by the life insurance company in an attempt to deny your claim
- We will handle all negotiations with the life insurance company’s team of lawyers
- We will vigorously litigate 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.
WHAT HAPPENS IF THE BENEFICIARY PREDECEASES THE POLICYHOLDER?
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.
HOW LONG DO I HAVE TO CONTEST DENIAL OF MY LIFE INSURANCE CLAIM?
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 the 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.
WHO IS AUTHORIZED TO CHANGE A LIFE INSURANCE BENEFICIARY DESIGNATION IN CO?
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.
HOW DO I FIND OUT WHETHER SOMEONE HAD A LIFE INSURANCE 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.
CAN I SHARE THE DEATH BENEFITS WITH MY SIBLINGS IF I AM THE ONLY BENEFICIARY?
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.
THE BENEFICIARY DESIGNATION WAS CHANGED JUST BEFORE THE POLICYHOLDER’S DEATH FROM ME TO SOMEONE ELSE, WHAT SHOULD I DO?
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.
CAN I STILL RECEIVE DEATH BENEFITS IF THE LIFE INSURANCE POLICY LAPSED?
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..
CAN THE LIFE INSURANCE BENEFICIARY DESIGNATION BE CHANGED AFTER THE POLICY HOLDER’S DEATH?
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..
WHEN SHOULD A SPOUSE CONTEST A LIFE INSURANCE BENEFICIARY DESIGNATION?
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.