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What To Do If Life Insurance Company Is Stalling

When a life insurance company stalls in processing a claim, families are left grappling with grief and facing mounting financial uncertainty.

This blog sheds light on this critical issue, providing you with essential strategies and steps on what to do if your life insurance company is stalling on paying you the money you’re owed.

If you need professional help to stop your insurance provider from stalling on your life insurance claim, speak with a seasoned life insurance attorney, like those at Boonswang Law, can help you get the financial compensation you deserve in a timely manner.

Contact Boonswang Law today to talk to a life insurance lawyer who will fight for your rights against life insurance companies.

Steps to Take if the Life Insurance Company Stalls Your Payment

When a life insurance company stalls your payment, it’s crucial to follow a structured approach to effectively advocate for your claim. This section outlines strategic steps you can take, from gathering the necessary documentation to communicating with the insurance agent, ensuring you’re prepared to counter any stalling tactics.

Step 1: Gather All Relevant Evidence

Gathering all relevant evidence is about assembling every piece of paperwork that substantiates your right to the life insurance claim. This includes the original policy documents, any amendments, detailed medical bills and records, the death certificate, and all correspondence with the insurer.

In the event that the insurance company challenges the validity of your claim or delays the process, having an organized and complete set of documents can expedite the review process. It sends a clear message to the insurer that you are well-informed, prepared, and serious about your claim, which can sometimes influence a quicker resolution.

Step 2: Document Every Interaction

Documenting every interaction with the insurance company creates a chronological blueprint of the claim’s progress, highlighting any instances of stalling or unresponsiveness. This record-keeping should include detailed notes of phone calls, saved emails, and summaries of in-person meetings with insurance adjusters.

Each recorded interaction acts as evidence of the insurance company’s responsiveness or lack thereof, providing a factual basis to contest any unjust delays. In situations where disputes arise, having this detailed log can be instrumental in demonstrating the insurance company’s stalling tactics or procedural lapses.

Step 3: Continue to Cooperate with the Insurance Company

Continuing to cooperate with the insurance company by promptly responding to their requests for information or additional documentation demonstrates your commitment to a resolution. This cooperation ensures that the insurance company has no legitimate reason to delay the claim and establishes a record of your proactive stance. It is recommended, however, that you reach out to a seasoned life insurance lawyer before responding to the insurance company’s requests.

Maintaining this cooperative channel of communication sometimes expedites the claim process with many insurance companies. It helps prevent any unnecessary delays that might arise from missing or incomplete information. It also establishes a good faith effort on your part, which can be advantageous if the life insurance claim escalates to a legal dispute in court.

Step 4: Retain a Life Insurance Attorney

Retaining a life insurance lawyer can dramatically alter the trajectory of your claim, especially when faced with a stalling insurance company. A qualified life insurance dispute lawyer brings a wealth of knowledge in insurance law, providing strategic advice and taking decisive action to move your claim forward.

A life insurance attorney’s intervention signals to the insurance company that you are serious about enforcing your rights and will not be easily dissuaded by stalling tactics. They can effectively navigate the legal system, challenge unjust delays, and advocate for your best interests against the life insurance provider.

Step 5: Submit a Formal Complaint

Submitting a formal complaint to the state’s insurance commissioner is a step you can take when all other efforts to expedite your claim have been exhausted. This action can trigger a formal review of your life insurance case by regulatory authorities, potentially leading to a more prompt response from the insurer.

The formal complaint serves as an official record of the insurance company’s failure to act in good faith, possibly invoking regulatory scrutiny of its practices. This can benefit your individual case but can also serve as a deterrent against similar future misconduct by the insurer.

Reasons a Life Insurance Company Stalls

Life insurance companies might stall claims for various reasons, including the need for additional documentation to validate the claim or internal bureaucratic delays. These requests, while sometimes legitimate, can become excessive and serve as tactics to unnecessarily prolong the claim process.

Understanding the insurer’s rationale, whether it’s a thorough review for policy compliance or an attempt to delay payment, can help you address the specific challenges head-on and streamline your response. Insurers may employ deliberate stalling tactics, such as prolonging the investigation of a claim or exploiting bureaucratic inefficiencies, to hold onto funds longer. By doing this, they’ll benefit from the accrued interest or hope the claimant settles for less money.

How Long Do Life Insurance Companies Have to Settle a Policy?

The time frame for a life insurance company to settle a policy varies based on state regulations and the specifics outlined in the policy itself. These laws ensure beneficiaries aren’t left waiting unnecessarily, providing them with the means to plan accordingly and seek recourse if delays arise.

Knowing about these legal time limits allows beneficiaries to maintain reasonable expectations and hold insurers accountable for adhering to timely settlement practices. This understanding is key to handling the claims process smoothly and ensuring you receive the insurance payout you are due without lengthy delay.

What to Do If The Life Insurance Company Ignores You

When a life insurance company consistently ignores your attempts to communicate, it’s a serious concern that may indicate bad faith practices. In such cases, promptly consulting with a life insurance lawyer becomes crucial.

A life insurance attorney can assess your case, help document the insurer’s lack of response, and prepare to take legal action if necessary. This ensures that your rights are protected and the life insurer is held accountable for their inaction.

Talk with a Life Insurance Attorney To Learn What Your Case Is Worth

When life insurance claims are delayed, it’s important to get legal representation. The attorneys at Boonswang Law are experienced in life insurance disputes and can help you navigate these challenging situations. Boonswang Law’s proven track record of successfully contesting insurers’ stalling tactics sets us apart from other law firms.

By choosing our life insurance lawyers, you gain access to legal professionals committed to achieving a timely resolution of the compensation to which you’re entitled.

Contact Boonswang Law today to talk with a life insurance attorney when the insurer is stalling on paying out your claim.

Written By: Chad Boonswang
Chad G. Boonswang, Esquire is a litigation lawyer based in Philadelphia, PA. Selected as an ASLA 2014, 2015, 2016, 2017 and 2018 Top 100 Litigation Lawyer, Mr. Boonswang plays to win. As a lawyer, athlete, and scholar, he has always put in the energy, time, and commitment to be the best. After working for several prominent law firms in Philadelphia, including Montgomery McCracken Walker & Rhoads LLP, he founded his own practice in 2002.  Since then Chad has recovered tens of millions of dollars on behalf of his clients from life insurance claims and catastrophic injury cases.  Year after year, he has earned a 10.00 Superb rating on Avvo.

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