An Incentive to Deny
As you know, insurance companies make more money when they deny claims. They will look for any opportunity to delay or deny life insurance coverage. This may involve accusing the deceased policyholder of fraud or misrepresentation or look for improper policy exclusions that would allow them to deny the claim.
Appealing a Denial of Life Insurance Benefits
Many wrongful denials of life insurance benefit claims can be overturned without the cost, frustration, and delay of filing a lawsuit, simply by supplying the right information and knowing how to respond to your insurance companies accusations. Understanding the common tactics utilized by insurance companies and recognizing their deceptive behavior is essential in securing your rights and preparing an effective response. However, before you proceed, it is vital that you understand your rights and obligations under your insurance policy and the law that governs your claim. If you fail to meet your obligations, you may unknowingly fatally destroy your claim. Your response to your insurance company's wrongful denial of your life insurance claim depends on the law that governs your claim. Private insurance policies, purchased independent from your employment, will fall under your state's contract law. However, most group insurance policies, obtained as a product of employment (whether you pay your premiums or your employer pays the premiums) fall under the federal statute, ERISA. Both types of claims have unique and specific requires for claimants in responding to their insurance company's wrongful denial.