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Our Texas life insurance lawyers have decades of experience fighting for the rights of life insurance beneficiaries like you.
A denied life insurance claim can leave you feeling helpless and uncertain about your family’s future. At Boonswang Law, our seasoned life insurance lawyers in Houston, TX, are here to challenge wrongful denials and fight for the benefits you’re owed.
Our Houston life insurance attorneys have:
- Decades of experience
- Recovered over $200 million for our clients
- Litigated cases involving many insurance carriers
- Accolades from several publications
Life insurance exists to ease financial burdens, protect families from unforeseen hardships, and provide stability during life’s most challenging times. Unfortunately, 99% of term life insurance policies fail to pay out, often citing technicalities or errors to justify withholding benefits. Our Houston life insurance attorneys stand with you, holding your life insurance company accountable and securing the payments you deserve.
Contact Boonswang Law Firm at (855)-347-1279 for a free legal consultation with our seasoned life insurance lawyers in Houston to review your denied claim and have us fight for your rights.
Boonswang Law Has Helped Life Insurance Beneficiaries throughout Houston and Texas, Including These Cities and the Surrounding Areas:
- Houston
- San Antonio
- Dallas
- Austin
- Fort Worth
- El Paso
- Arlington
- Corpus Christi
- Plano
- Laredo
- Lubbock
- Irving
- Garland
- Amarillo
- Grand Prarie
Resolve Your Claim with a Free Consultation from Houston Life Insurance Lawyers!
Resolve Your Claim with a Free Consultation from Houston Life Insurance Lawyers!
What Leads to Life Insurance Claim Denials in Houston?
Life insurance companies often deny claims to maximize profits, leaving beneficiaries to face unnecessary financial challenges after the loss of a loved one. Recognizing these denial tactics can help you understand your situation and determine whether legal intervention is necessary to recover your Texas life insurance benefits.
Unpaid Premiums
If premium payments are missed, even by accident, the life insurance company may consider the policy lapsed and deny claims. However, lapses in coverage are not always the life insurance policyholder’s fault. For instance, an employer handling group coverage might fail to deduct premiums correctly, or the life insurance company may neglect to provide required lapse notices. Beneficiaries in these situations might still be entitled to financial compensation following the loss of a loved one.
Policy Misinterpretation
The technical language in Texas life insurance policies can lead to disputes over coverage. Life insurance companies sometimes interpret ambiguous terms in their favor to deny valid claims. For example, they might argue that an accidental death isn’t covered due to a loosely defined clause, even when the policyholder intended such events to be included in their life insurance policy.
An Exclusion Applies to the Cause of Death
Many life insurance policies include exclusions for specific causes of death, such as suicide or participation in illegal activities. Life insurance companies may misclassify deaths to fit these exclusions—like labeling a fatal car accident as reckless behavior.
Alleged Misrepresentation and Retroactive Cancellation
Life insurance companies may claim that the policyholder provided inaccurate information during the application process to justify canceling the policy after their death. Even minor errors, such as unintentional medical history omissions, can lead to denied life insurance claims. Beneficiaries often need legal assistance to prove the denial was unjustified and recover the benefits owed.
Simplifying the Life Insurance Claims Process in Houston
The life insurance claims process involves specific steps and documentation, and missing even a small detail can lead to unnecessary delays or denials. Life insurance beneficiaries in Houston should approach the process clearly and understand what’s required to ensure their claim is successful.
Follow these key steps to work through the claims process effectively:
- Notify the Insurance Company: Inform the life insurance company of the policyholder’s passing promptly, providing a certified copy of the death certificate to initiate the claim process.
- Complete the Claim Form: Carefully fill out the life insurance company’s claim form, ensuring all information aligns with the details listed in the policy to avoid processing delays.
- Submit Supporting Documents: Along with the completed form, provide essential documentation such as the death certificate, proof of identity, and a copy of the life insurance policy.
- Await the Insurer’s Review: The insurance company will evaluate the claim and submitted materials, which can take several weeks, depending on their policies and workload.
- Respond to the Outcome: If the life insurance claim is approved, the benefits will be distributed to the named beneficiaries. In cases of denial, request a written explanation and consult an attorney to explore your legal options.
Boonswang Law’s seasoned life insurance lawyers in Houston can assist you at every step to ensure your life insurance claim is processed correctly and without unnecessary complications.
Steps to Resolve Beneficiary Disputes in Houston Life Insurance Claims
Beneficiary disputes can complicate the life insurance claims process, leaving families in conflict over who is entitled to receive benefits. These disagreements often require legal support to ensure the rightful beneficiaries are compensated. Below are the most common types of disputes and how they are typically resolved:
- Contested Beneficiary Designations: Beneficiary designations may be contested if there’s evidence of coercion, fraud, or a lack of mental capacity when the policyholder makes changes. For example, a beneficiary change made shortly before the policyholder’s death under suspicious circumstances can lead to legal challenges. Resolving these disputes often requires presenting clear evidence and expert testimony in court.
- Outdated Beneficiary Information: Failure to update beneficiary designations after life events like divorce, remarriage, or the birth of children can create confusion. For instance, a former spouse may still be listed as the beneficiary despite the policyholder’s intent to name a new partner or child. The dispute may be resolved in these cases by examining legal documents, such as divorce decrees or wills, to determine the life insurance policyholder’s true intent.
- Multiple Beneficiaries: Disputes can arise when a policy includes multiple beneficiaries but lacks clarity on how benefits should be divided. For example, one beneficiary may believe they are entitled to a larger percentage, while another claims equal distribution. Legal mediation or arbitration is often required to address these conflicts and ensure a fair resolution.
What You Can Expect When You Work With the Houston Life Insurance Lawyers at Boonswang Law
When you work with Boonswang Law, you gain access to a team of Houston life insurance lawyers committed to helping beneficiaries handle the claims process and resolve disputes effectively. Here’s what we provide:
- Comprehensive Policy Review: We examine your policy to confirm life insurance coverage, identify exclusions, and pinpoint inconsistencies that may impact your life insurance claim.
- Thorough Analysis of Denial Reasons: Our Houston life insurance lawyers reviews denial letters and other communications from the life insurance company, uncovering errors or misinterpretations that may have led to the wrongful denial.
- In-Depth Investigations: We investigate the circumstances surrounding your claim, whether it involves unpaid premiums, policy misinterpretations, or disputed beneficiary designations, to build a strong case on your behalf.
- Skillful Negotiations: Our life insurance lawyers in Houston negotiate directly with the insurance company’s legal representatives, ensuring your rights are protected and advocating for the benefits you’re entitled to.
- Litigation When Necessary: If the insurer refuses to honor the claim, we are fully prepared to litigate the matter in court to secure the compensation you deserve.
Avoiding Common Insurance Fraud and Bad Faith Practices
While life insurance is intended to provide security for beneficiaries, some insurers engage in deceptive practices that undermine this promise. Below are common fraudulent schemes and bad-faith behaviors that policyholders and beneficiaries in Houston should be aware of:
Indexed Universal Life Insurance
Indexed Universal Life (IUL) policies can appear attractive due to promises of significant growth tied to stock market indices. However, life insurance companies often fails to fully explain these policies’ long-term financial commitments and risks. For instance, policyholders with limited disposable income or those nearing retirement may struggle to maintain these policies, leaving them with little to no returns.
Churning Scams
Churning scams involves convincing policyholders to replace an existing life insurance policy with a new one under the guise of better terms or lower premiums. What’s often hidden is that the old policy funds the new one through a loan, ultimately draining the value of both. This leaves policyholders without coverage, often when they need it most. If you suspect you’ve been a victim of a churning scam, seek legal assistance immediately.
Insurance Bad Faith
Insurance companies act in bad faith when they knowingly avoid fulfilling their contractual obligations. Examples include denying claims without valid reasons, delaying payouts excessively, or offering less than the full policy value. Such practices can place beneficiaries in financial distress, making it essential to involve a life insurance attorney to pursue the benefits you deserve.
Frequently Asked Questions about Life Insurance Claims in Houston
What is the Statute of Limitations in Texas for Contesting When My Life Insurance Claim Was Denied?
In Texas, the statute of limitations for challenging a denied life insurance claim depends on the type of policy. For employer-provided policies governed by ERISA, you must appeal within 60 days of the denial. Individual policy disputes should be filed as soon as possible to preserve evidence, but you generally have up to four years to take legal action.
Can I Still Receive Death Benefits if the Policy Lapsed?
It’s possible to recover benefits from a lapsed policy under certain conditions. If premiums were missed but the lapse occurred within the policy’s grace period, benefits may still be payable. Additionally, if the insurer failed to follow proper notice procedures or a disability waiver was applicable, the denial could be overturned with legal assistance.
The Beneficiary Designation Changed Just Before the Policyholder’s Death From Me to Someone Else, What Can I Do?
If you believe a beneficiary change was made under coercion, fraud, or without the policyholder’s sound consent, you have grounds to contest it. Evidence such as medical records, witness testimony, or financial documents can support your case. Consulting a Houston life insurance attorney is needed to help handle these disputes.
I Am the Only Named Beneficiary. Am I Allowed to Share the Death Benefits with My Siblings?
Yes, as the sole beneficiary, you can legally choose to share the proceeds with your siblings after receiving the payout. While the insurance company will only pay the named beneficiary, how you allocate the funds afterward is entirely your decision.
I Think a Loved One May Have Had Life Insurance, How Do I Find Out?
Start by reviewing the deceased’s personal records for evidence of a life insurance policy or payment receipts. Employers can also provide information about group policies, and checking for regular premium payments on bank statements can help. If these methods don’t work, tools like the NAIC’s Life Insurance Policy Locator may assist in finding unclaimed policies.
When Should a Spouse Contest a Life Insurance Beneficiary Designation?
A spouse might contest a beneficiary designation if it contradicts legal agreements like divorce decrees or appears to have been altered improperly. For instance, if an ex-spouse was named due to outdated records, or changes were made under undue influence, legal action may be warranted.
Who is Authorized to Change a Life Insurance Beneficiary Designation in TX?
Only the policyholder has the right to change the beneficiary on a life insurance policy. In some cases, an individual with a valid power of attorney may also make these changes, but the authority to do so must be explicitly stated in the power of attorney document
Can the Life Insurance Beneficiary Designation Change After the Policyholder’s Death?
No, beneficiary designations cannot be altered after the policyholder passes away. Any changes made posthumously are invalid and unenforceable.
What if a Minor is the Designated Life Insurance Beneficiary?
Minors cannot directly receive life insurance benefits in Texas. Instead, the court may appoint a custodian to manage the funds until the minor reaches adulthood, or the policyholder can establish a trust to ensure the benefits are handled according to their wishes.
What Happens If the Beneficiary Predeceases the Policyholder?
If the named beneficiary passes away before the policyholder and no contingent beneficiary is listed, the death benefit typically becomes part of the policyholder’s estate. Regularly updating your policy can help avoid complications like these.
Get Legal Guidance for Houston Life Insurance Claims from Boonswang Law
When you work with Boonswang Law, you’re backed by a team of Houston life insurance attorneys who are committed to protecting beneficiaries’ rights. Our proven success includes recovering more than $200 million in denied claims, holding insurers accountable, and ensuring our clients receive the benefits they’re entitled to.
Contact Boonswang Law today to speak with our life insurance lawyers in Houston, TX, and have our seasoned team fight for the compensation you’re rightfully owed.
Life Insurance Attorneys Serving These States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Mississippi
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- US Virgin Islands
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming