When your loved one passes away, you might feel a semblance of relief that they had life insurance coverage that can help your family deal with the losses from a financial standpoint. You might never imagine that your life insurance claim would be denied, but insurance companies do find reasons to deny claims. Some of these reasons are valid, but others are not, and you should always discuss a denial with an Illinois insurance claims attorney.
The following are some common reasons why your life insurance claim might be delayed or denied.
Often, after you get a policy, there is a time period during which the insurer can contest a claim if the death occurs then. The insurer might claim there were material misrepresentations during the application process, and it can use such claims to deny benefits, even if the death had nothing to do with the claim. For example, if the policyholder lied about being a smoker, the insurer can contest a claim, even if the person died in a car accident.
Each life insurance policy excludes coverage for certain causes of death. Excluded causes might include:
Different policies have different exclusions, so make sure you are aware of what your policy excludes.
If a policyholder misses premium payments, the life insurance policy can lapse or be terminated. Nonpayment is a common reason for denials, but it is not always a valid one. Your attorney can determine whether the insurance company sent proper notices to the policyholder prior to the lapse.
There are many issues that can arise due to how a beneficiary is designated on the policy. Some issues that might cause delays, if not denials, include:
If you run into any beneficiary-related issues, contact a lawyer who can help you resolve the matter as soon as possible to minimize delays.
If you are having difficulties getting life insurance benefits or the insurance company denied your claim, do not give up hope. There are many ways that you can appeal the decision or address complications with the right legal assistance. At Anspach Law Office, we regularly help clients who are facing challenges in receiving their rightful life insurance benefits.
After the loss of your loved one, let us help. Contact us today to discuss your situation and how we can assist you.