Life insurance exists to help those who’ve lost a loved one. Family members of the deceased are protected by their life insurance plans after they pass away, as they provide financial relief and compensation when the surviving loved ones need it most. But even life insurance policies that are thoroughly drafted, with contracts signed, can take awhile to pay out.

Insurance companies seem to always find a way to delay paying out claims, or deny claims altogether. The reasons below are some of the most commonly occurring reasons we see at McKennon Law Group. If you or a loved one are being denied a life insurance policy claim, or your claim is being delayed, contact our attorneys for a free case evaluation.

Reason 1: Drugs or alcohol were involved in the death

Unfortunately, many life insurance companies will disqualify deaths that occurred under certain circumstances. Death due to drug or alcohol abuse are often included as some of these circumstances. This manner of death is referred to as “self-inflicted,” and typically refers to any death that occurs when the deceased happened to be under the influence of these substances– even if their cause of death wasn’t directly due to the consumption.

If your life insurance policy claim is being delayed or denied due to a drug- or alcohol-related death, contact McKennon Law Group for help.

Reason 2: The deceased died via homicide

There are some exceptions, but many life insurance policies don’t cover homicide. These cases are especially complex. If a beneficiary is suspected of homicide, and it’s believed that they intentionally killed the deceased, they won’t have a chance at receiving the benefits until the investigation ends. Similarly, if a beneficiary engaged in any other criminal or unlawful activity, especially one that’s believed to have contributed to the death of the deceased, the claim will be held up until the investigation is resolved or the beneficiary is no longer under investigation.

Reason 3: Death by suicide

Life insurers have the right to delay or deny a claim if the death occurred by suicide. There are clauses in most insurance policy contracts that aim to discourage those contemplating death from buying a life insurance policy. Sometimes, insurance companies will flag this as a type of life insurance policy fraud. It’s important to note, however, that not all life insurance policies exclude suicide as a rule, so be sure to check the fine details.

In situations like these, it’s wise to seek the help of an attorney who can contact the deceased’s insurance company, find out valuable and detailed information from the contact, and fight for your right to life insurance policy money.

Reason 4: The deceased passed away during the contestability period

If an individual passes away within the first two years of their insurance policy being active, the insurer can contest the policy if they so choose. When someone applies for life insurance, the application will require certain information. This information might include their income, health, criminal history, age, body mass index, and more. Insurer’s have the right to contest the applicant’s information in order to make sure it’s accurate.

During this window, which is referred to as “the contestability period,” the insurance company may discover that the information was not entirely accurate, or there might be important information that was excluded from the original life insurance policy application. The insurer has the right to deny coverage if this occurs. For example, if an individual fails to disclose that they’ve been arrested before, or doesn’t disclose that they smoke cigarettes, the insurer can back out of coverage.

Similarly, an insurance company can deny paying out a life insurance claim if it’s been discovered that information in the application or life insurance policy was inaccurate, misrepresented or untruthful. Even if the death in question did not occur as a direct result of the misrepresentation, for example, if someone failed to say they smoke cigarettes, but died due to a car accident.

Reason 5: The insured failed to pay their insurance policy premium

This is one of the most commonly occurring reasons that an insurance company might delay in giving a claim or deny it altogether. Life insurance policies are only active for as long as the insured completes payments on time. When the insured fails to pay their premium, the insurance can lapse or be canceled altogether.

This type of denial and delay are quite common. If you or a loved one has an insurance policy, always be certain that payments are being made on time and the full amount of the premium requested is paid by any associated deadline. It’s important to note as well that beneficiaries have the right to know whether or not insurance companies sent late payment notices to the policyholder, and whether or not the situation was rectified.

When it comes time to receive life insurance benefits, beneficiaries, who are often friends and family members, sometimes create disputes, as each person has conflicting ideas of how much money they should receive from the policy. Percentages of money owed are listed out in the policy for each beneficiary, but when life changes occur, relationships change and it can be difficult to know where life insurance policy money rightfully belongs. Due to the personal, familial nature of these issues, life insurance policy disputes can be sensitive, and run the risk of straining relationships between close loved ones.

If you or a loved one are tangled in a life insurance policy dispute, contact McKennon Law Group to schedule a free consultation with one of our skilled dispute attorneys. By teaming up with an experienced, hard working attorney, you mitigate the risk of missing out on money that’s rightfully owed to you, as well as gain a trusted partner to guide you through this tough challenge with your loved ones.

What Are Common Reasons For Life Insurance Beneficiary Disputes?

It’s never easy to deal with beneficiary disputes, especially when they occur due to a major life change. These major events, such as divorce, death, marriage, childbirth, or even adoption can make disputes arise between life insurance policy beneficiaries. For example, someone may have a child and forget to reflect this change in the policy, which would in turn make that child miss out on money that some feel they should receive.

Sometimes, a policyholder who is sick will make last-minute changes at the end of their life. In other cases, family members or loved ones simply feel left out, and will want to claim some of the insurance policy money as well.

Those who feel they deserve money from the policy have the option to file a competing claim, stating that the life insurance policy holder was influenced by others, was not of sound mind, or maybe was even coerced to choose certain beneficiaries when they were making their designation plans.

What Happens During A Life Insurance Policy Dispute?

Once an insurer receives the dispute, they may file what’s referred to as an “interpleader action,” where the life insurance money is placed into escrow and only re-released once the dispute has been settled. Beneficiaries involved in the dispute might require mediation or arbitration to be resolved, or may need to bring their case before a jury.

Whether you are seeking life insurance money as a beneficiary, or could potentially lose out on your cut of the policy money, teaming up with a lawyer is a wise decision, as they will help you share your side of the story and defend you before others.

Do I Need A Lawyer For A Beneficiary Dispute?

It is always wise to defend yourself with the help of a lawyer. With the help of a qualified life insurance dispute attorney, you can fight for the money you rightfully deserve and protect yourself from others with malintent.

WIthout the help of a lawyer, it can be difficult to state your claim before a judge, jury, mediator and of course, other beneficiaries. With the help of a lawyer, it’s easier to gain access to important documentation, evidence, and other resources that prove you are a worthy beneficiary and are entitled to money.

Our attorneys at McKennon Law Group use their vast network of legal resources to create a strong case for your defense, and have decades of skill and expertise to help you win your case. Without a life insurance dispute attorney, it can be harder to create a strong case.

How Does A Lawyer Help Me Win My Life Insurance Dispute?

Our attorneys can help you navigate tough situations, such as when beneficiaries are improperly changed, or changed at the last-minute, as well. Even if no beneficiaries are listed on a life insurance policy, or attorneys can step in and help make sense of this confusing situation, eating your stance and your side is sufficiently communicated before a judge.

Other disputes our team can handle include:

• Denied claims (due to fraudulent beneficiary designation, or otherwise).
• Disputes between children as beneficiaries.
• Disputes between current spouse and former spouse.
• Disagreements on percentages of payout to each beneficiary.

We’re aware that life insurance policy beneficiary disputes can be especially challenging, as they often involve close family members, loved ones and even friends. Our attorneys are compassionate to this information, and pledge to make every step of the proceedings as effortless and stress-free as possible on your behalf, so your situation can be resolved as efficiently as possible.

Call McKennon Law Group PC today to schedule a free phone evaluation regarding your life insurance policy dispute. Together, we can help win your dispute and claim the money that’s rightfully owed to you.

What Is Life Insurance?

If people in your life rely on you financially, they could quickly be put into financial distress if you were to die unexpectedly. Life insurance is a contract between the insurance company and an insured in which the company promises that at the death of the insured, the company will pay a certain amount of money to a person the insured designates in the contract if that person survives the insured. In return for the promise to pay, the insured will pay the life insurance company a premium.

Many people are unsure whether or not they need life insurance, let alone if they need a lawyer to help them get a policy or get a claim from their policy. If you have any questions about the information below, contact McKennon Law Group to speak to a qualified insurance attorney about your options.

How Do I Know If I Need Life Insurance?

Not everyone needs life insurance. Parents don’t typically take out life insurance policies on their children, as parents are responsible for their children’s financial wellbeing. Rather, parents would take out a life insurance policy on themselves to mitigate the risk of bringing financial hardship upon their children.

If your death would financially impact the other people in your life, it’s wise to get life insurance. If you have a life insurance policy and pass away, the people who receive your death benefit – your spouse, children, or other family members – are permitted to use that money to cover their financial needs, such as paying a mortgage or car payment.

If you die unexpectedly and you feel that your sudden death would put your loved ones in a bad financial position, getting life insurance would be wise. Having life insurance takes care of any debt you hold during your lifetime after you pass away, meaning it won’t become a burden to your loved ones. Your spouse or children may inherit certain debts after you pass away, making it a wise decision to get insurance to avoid this. Many people also get life insurance if they believe their funeral costs would be a financial burden on their loved ones.

How Should I Choose A Life Insurance Lawyer?

As with any time you need the help of a lawyer, you should make your choice based upon their record of success, any awards they’ve won, referrals they’ve gotten, and so forth. You want to work with a law firm that can prove their success and has repeatedly demonstrated their care and concern for their clients.

With over 70 years of experience, the McKennon Law Group has specialized in long-term disability and short-term disability insurance, life insurance, health insurance, accidental death insurance, and long-term care claims, as well as all types of ERISA litigation claims involving employee benefits, including group insurance claims, pension claims and severance claims.

Our law firm provides aggressive advocacy to those who need it most. We’ve recovered millions of dollars for our clients, and are proud to receive superb testimonials from our many thankful clients. Our attorneys have received many recognitions and awards as top insurance and ERISA attorneys, including Super Lawyers, The American Lawyer, Martindale-Hubbell, AVVO, Forbes, and the Los Angeles Times, among others. See our Awards & Recognitions. These awards and accolades are testament to our commitment to our clients, and proof that we will stop at nothing to ensure our clients receive the best possible outcome for every case, every time.

How Much Does It Cost To Speak With A Life Insurance Lawyer?

At McKennon Law Group, most of our cases are taken on a contingency fee basis. A contingency fee basis means that you pay nothing at all unless we win your case by way of judgment, reinstatement of benefits or settlement. If we don’t win your case, you pay nothing.

Not all California insurance lawyers offer a free consultation either, but our law firm does. We offer a free, no-risk case evaluation to anyone with issues regarding life insurance – or any other insurance policy they hold. We understand that when insurance companies fail to properly pay out claims, or delay in paying out claims, it can put you in a tight financial spot. That’s why our initial phone consultation is offered free of charge to any California resident in need.

Schedule A Case Evaluation With A Life Insurance Lawyer Today

If your life insurance company has acted in bad faith, or you have questions regarding the legal terms and conditions laid out in your life insurance policy, schedule a free case evaluation with the California insurance attorneys at McKennon Law Group today.