What Should You Do If Your Life Insurance Claim is Denied?
If your family’s life insurance claim is rejected, you’re going to need the advice and services of a California life insurance claims attorney at the McKennon Law Group. We’ve advised and represented California families in life insurance disputes for over seventy years.
It’s difficult when a loved one passes away. It’s even more difficult when an insurance company rejects your family’s life insurance claim. Insurance companies are obligated by law to act in good faith, to comply with state and federal laws, and to make payouts within a reasonable period of time.
If a life insurance company needlessly delays the process or denies your family’s claim, you have the right to take legal action against the company with an attorney’s help.
Why Would a Life Insurance Claim Be Denied?
Life insurance claims usually are not rejected, but a life insurance company might deny a claim because the policyholder died during the contestability period (usually the first two years the policy is in effect), because of the manner of death, or because the policy lapsed before the claim was submitted.
A life insurance company may void a policy for non-payment of premiums or if the policyholder lied to obtain the coverage. For example, if you falsely claim that you were never a smoker, but you die from a tobacco-related illness, the company will not pay out.
Most life insurance policies also include a suicide clause that voids the death benefit if the policyholder commits suicide during the first two years of the policy – or longer, depending on the policy’s particular conditions and terms.
When a life insurance policyholder’s death is the result of a homicide, the insurance company will not pay a death benefit until the beneficiaries have been cleared as possible criminal suspects. If a beneficiary is implicated in a homicide, the payout goes to a contingent beneficiary, if one was designated, or a California court will decide who receives the payout.
What If Your Claim is Wrongly or Illegally Rejected?
When a life insurance claim is rejected, the company may refund the premiums that have already been paid and terminate the policy. The company may also explain why the life insurance claim was rejected, but you should still consult an attorney and consider taking legal action, especially if you believe the claim was denied wrongly or illegally.
Successfully contesting the denial of a life insurance claim isn’t easy. If the policyholder committed suicide during the contestability period or lied to acquire the policy, you may have no obvious grounds for challenging the denial of your claim. You’ll need the personalized advice that a California life insurance lawyer at the McKennon Law Group will provide.
What Will a McKennon Law Group Attorney Do on Your Behalf?
Your attorney will examine the policy and the stated reasons for the rejection of your claim to determine if the claim has been wrongly or illegally denied. If your claim should not have been denied, your attorney may be able to reach a settlement with the insurance company or may recommend taking the case to court.
If your family is dealing with the denial of a life insurance claim, learn more. Schedule a consultation now – there’s no cost or obligation – with an attorney at the McKennon Law Group by calling (800) 682-4137 or by using the contact form on this website. Our law offices are located in Newport Beach, Los Angeles, San Diego, and San Francisco.