You’ll find plenty of websites claiming that 1 in 5 life insurance claims is denied, or that some insurers deny half their claims. Many of those figures come from health insurance data, which has nothing to do with life insurance. Below are the figures that do come from primary life insurance sources:
It depends on the kind of policy. If it was term life insurance, there’s usually nothing to get back: term coverage has no savings component, so the premiums bought coverage only while the policy was in force. If it was a permanent policy, such as whole life or universal life, it probably built up cash…
Usually not right away. In most cases, a life insurance company doesn’t know the insured has died until someone tells it, so the claim starts when a beneficiary or family member contacts the insurer. Insurers do have to search for deaths and beneficiaries in some situations, but you shouldn’t count on hearing from them. If…
Most states put limits on how long a life insurance company can sit on a death claim, and many require the insurer to pay interest when it’s late. If the insurer keeps asking for more paperwork, stops returning calls or says it’s “still investigating” months after you filed, you have options. Here’s what I tell…
To claim a life insurance policy after someone dies, contact the insurance company, ask for its claim form, and send the completed form with a certified copy of the death certificate. Each beneficiary usually files separately. If everything is in order, many insurers pay within 30 to 60 days. Here are the steps in order,…
Yes. A life insurance policy is a contract, and when an insurer refuses to pay a valid death claim, the beneficiary can sue to enforce it. In some states, a beneficiary can also sue for bad faith when the insurer’s conduct goes beyond a simple disagreement over coverage. Most of my cases resolve without a…
When you’re facing a denied or delayed life insurance claim, you shouldn’t have to pay anything upfront. I handle these cases on a contingency fee, which means my fee is a percentage of what I recover for you, and there’s no fee if I don’t recover anything. Here’s how that works and what you should…
Generally speaking, no. Life insurance death benefits are paid out directly from the insurer to the beneficiaries, without going through probate. This is because life insurance is considered separate from the policyholder’s estate, such that it is not subject to debt collection, payment of the decedent’s bills, or taxation.
If you get health and retirement benefits through work, ERISA is supposed to protect your rights regarding these programs. If you are considering making a claim to access any of the benefits available to you–such as disability, health insurance, or life insurance–you will need to follow specific procedures. Similarly, if your claim is denied, you…
Power of attorney for insurance purposes can mean any of several different things. Renowned national life insurance attorney Chad G. Boonswang explains everything you need to know about power of attorney in life insurance.
