Filing a life insurance claim seems like a pretty straightforward process at first. However, once life insurance beneficiaries start to file a claim, they often realize that receiving a life insurance payout isn’t as simple as it seems. If you’re dealing with the death of a loved one, money is the last thing you need to worry about. This is why hiring a life insurance lawyer is essential. Boonswang Law is proud to serve New York and can help you receive the funds you deserve. With an experienced team of NY life insurance lawyers, you can feel confident that Boonswang law has your best interests at heart.
OUR LIFE INSURANCE BENEFICIARY LAWYERS HELP PEOPLE WITH THEIR LIFE INSURANCE CLAIMS THROUGHOUT THE STATE OF NY, INCLUDING BUT NOT LIMITED TO THOSE LIVING IN AND NEAR:
COMMON DENIAL REASONS FOR LIFE INSURANCE CLAIMS IN NY
Just because a life insurance policy is purchased doesn’t automatically mean that a life insurance claim will be paid out upon the insured’s death. Here are several legal reasons why an insurance policy could choose to deny paying out life insurance benefits in NY.
- Lack of Documentation: When a person passes away, the insurance company will want to see proof in the form of official documentation. Failing to submit these documents could result in your claim being denied.
Documents that show proof of a person’s passing may include a certified death certificate, an obituary, or a bill from the funeral home.
- Unpaid Life Insurance Premiums: Life insurance coverage typically lapses when the premium isn’t paid. If the covered person passes away without having paid their premium, it could mean that the beneficiaries are no longer entitled to death benefits.
- Policy Exclusions: Life insurance, like all other insurance policies, has exclusions. This means that certain causes of death may not be covered by the policy. For example, deaths by suicide are typically disqualified from life insurance coverage. If the circumstances covered person’s death are excluded in the policy, the insurance company does not legally have to pay. A life insurance lawyer can help you review a policy to have a better understanding of what is excluded. Unfortunately, because life insurance companies only make money when they don’t pay life insurance claims, they are quick to cite one of these reasons or another invalid reason to delay or deny your claim. We have helped many NY life insurance beneficiary clients get their claim paid when it was initially denied. Contact us to find out if you too can get paid.
WHAT TO EXPECT WITH WORKING WITH A LIFE INSURANCE LAWYER
Dealing with life insurance claims can be intimidating for a lot of people. Below are some of the many ways a NY life insurance lawyer can be helpful:
- Review the terms of the policy to explain what’s covered and what’s excluded
- Investigate the reason your life insurance claim was denied
- Help settle disputes over payouts
- Pursue payment of your life insurance claim in court
You know that the large national life insurance companies have a team of experienced life insurance attorneys ready to fight back if you challenge the denial of your life insurance claim. Don’t you want to have your own team by your side?
FREQUENTLY ASKED QUESTIONS ABOUT LIFE INSURANCE IN NY
WHAT CAN PREVENT A PERSON FROM QUALIFYING FOR LIFE INSURANCE IN NY?
Laws prohibit life insurance companies from denying people coverage on the grounds of race, religion, gender, etc., but there are legal reasons why a life insurance company can deny someone a policy in NY. Medical conditions, dangerous hobbies, and poor driving history are all things that could cause an insurance company to see covering someone as too much of a risk.
HOW LONG DOES IT TAKE TO GET A LIFE INSURANCE PAYMENT?
In most cases, it can take a life insurance company between 30-60 days to process a claim in NY. If you are the beneficiary of a life insurance policy, it is in your best interest to file a claim as soon as possible following the covered person’s death. An experienced life insurance lawyer can assist in making sure that your claim is filed correctly.
WHAT HAPPENS WHEN A LIFE INSURANCE CLAIM IS DENIED?
If you’ve filed a life insurance claim that was denied, you will receive a letter from the insurance company with an explanation. Next, you have the option to contest the rejection.
Hiring a NY life insurance lawyer is highly recommended so that you have the best chance of reversing your claim denial. A NY life insurance lawyer knows exactly how to navigate the situation to increase your chances of having the denial reversed.
WHAT HAPPENS WHEN A MINOR IS LISTED AS THE BENEFICIARY OF A LIFE INSURANCE POLICY?
In most cases, the court will appoint an adult to act as the custodian over the child’s inheritance until they reach 18. Unfortunately, however, little can be done to prevent the custodian from using the inheritance as they see fit.
If a minor must be the beneficiary of a life insurance policy in NY, it is best to set up a trust and name the minor the beneficiary of that trust. We recommend working with an estate planning attorney to help you understand the legalities of setting up a trust.
HOW WILL I KNOW IF MY LOVED ONE HAD A LIFE INSURANCE POLICY?
Unfortunately, there is no single database of life insurance policies, and many older policies are no longer retained by insurance companies or are buried in decades-old paper files. If you expect your spouse or relative to carry a life insurance policy but nobody knows the details, the best place to start are their financial records and mail. There will generally be annual or monthly payments notices, bank statement,s and other documents related to the policy which may indicate where the policy was taken out, and other identifying information. You can also check with the Unclaimed Property office in your state. After a period of time, if no beneficiary can be found and the deceased had no will or estate plan, their death benefit will be sent to the agency in your state that handles unclaimed property, and if you can prove your relationship you may be able to claim the benefit with the help of a life insurance lawyer.
CAN I SHARE LIFE INSURANCE BENEFITS WITH MY SIBLINGS IN NY?
There may be cases where a person has listed only one of their children as the beneficiary on a life insurance policy. Although the beneficiary doesn’t have the power to add anyone else to the policy, there is no rule against them sharing any death benefits they receive once the policy is paid out.
CAN DEATH BENEFITS BE CONTESTED IF THE BENEFICIARY WAS CHANGED RECENTLY IN NY?
Every policyholder is allowed to change beneficiaries during their lifetime as long as they are of sound mind and not under duress. The only exceptions are those who have designated irrevocable beneficiaries. This status is typically given to children and spouses, and neither divorce nor estrangement can alter this status. An irrevocable beneficiary must approve any changes to the policy that affect their benefits.
If an insurance company says you were removed as an irrevocable beneficiary from a life insurance policy, this change can most likely be contested successfully in NY.
There are situations where last-minute changes are made without the policyholder’s permission, when the policyholder is not competent to make those changes, or when the policyholder is under duress. These changes would constitute fraud and can be contested.
CAN I STILL RECEIVE DEATH BENEFITS IF THE INSURANCE POLICY HAS LAPSED?
Sometimes! If the life insurance policy you are the beneficiary on lapses, you may still be able to receive death benefits. Each situation is unique, so it’s best to consult a NY life insurance lawyer so they can address the specifics of the policy in question.
CAN THE BENEFICIARY ON A LIFE INSURANCE POLICY BE CHANGED AFTER THE POLICYHOLDER’S DEATH?
No. In general, the policyholder is the only person who is allowed to make changes to the policy. Any paperwork showing that the beneficiary has been changed after the policy holder’s death is likely fraudulent.
CAN A SPOUSE CONTEST A LIFE INSURANCE POLICY?
Yes. When a policyholder has divorced and remarried, there may be some confusion over who is entitled to their death benefits. A life insurance lawyer can help you understand what you are legally entitled to as the deceased’s spouse or former spouse.
Contact Our Team of Life Insurance Attorneys Today
Has your loved one’s life insurance death benefits claim been denied? Contact us for a free consultation at Boonswang Law. Our life insurance lawyers have helped clients like you recover the funds they legally deserve from insurance companies. If you don’t receive the full amount from the policy that’s due, there is no fee for us. We are here to help you.