As you already know, paying your insurance premium on time – whether that’s your car insurance, homeowner’s insurance, or life insurance – is of the utmost importance. Staying insured protects you from unpredictable events that often arise in life. But, if you fail to pay your insurance premium, your coverage can lapse and any future claims may be denied, keeping you from the very benefits you intended to get should you need them. Life insurance companies, unfortunately, routinely deny claims due to non-payment of premiums.
It is valid for a life insurance company to deny a claim if you have not paid your premium, as long as they do so for the proper reasons. Not all claim denials are valid, and these decisions can often be appealed. All states have different laws that dictate how insurance companies should handle their customers when insurance companies lapse. California life insurance laws are especially unique, and are best understood with the help of an attorney by your side. If your life insurance claim was denied in California due to not paying your premium, turn to a trusted lawyer from McKennon Law Group.
What Is A Life Insurance Lapse?
When an insurance payment lapse occurs, there is a period of time where you do not have insurance. This happens when an individual stops paying the monthly or quarterly payment for their life insurance premium. The insurance will cancel if it is not being paid, and your coverage therefore will end.
Depending on the unique stipulations of your policy, you may be able to reinstate the policy after a payment lapse if your insurance company permits, and if you meet certain stipulations and requirements. However, if your life insurance lapses, generally speaking, you will be denied your life insurance claim–unless you have the help of a life insurance lawyer.
At McKennon Law Group, we take the time to listen to your situation and provide open, honest advice for next steps. If your life insurance claim was denied due to a lapse in payment, we can communicate with your insurance company and search for any area of opportunity where this decision can be appealed.
What Are The Responsibilities Of The Life Insurance Company?
First and foremost, your insurance company has a responsibility to send you multiple notices if you have been late on your payment or failed to provide your payment at all. Whether it is via email or a standard mail, your insurance company needs to reach out to let you know that you haven’t been making payments and that your insurance will soon lapse. If your life insurance company fails to do so, you may be able to fight back against a denied claim. Adults above age 65 are especially protected by this responsibility. Just like you have a responsibility to pay your premium, your insurance company has a responsibility to keep you informed about the status of that penalty.
Life insurance companies are also required to follow all state and local laws before denying a claim due to a lapsed insurance policy, just as they are required to properly allocate the funds that they receive. Insurance companies are also required to include certain language in their communications that provides details about payments lapses, so that any policyholder clearly understands what could happen if they do not pay their premium.
All life insurance companies are required to operate in good faith. If you feel that your life insurance company in California is acting in bad faith, and has wrongfully denied your life insurance claim, or failed to uphold their responsibilities as your insurer, you have the right to contact a lawyer and hold this company accountable for their action, or lack of action. Our team at McKennon Law Group can help any California resident in this situation. We understand how frustrating it can be to have a denied claim, and take the time to find any possible solution to get you the compensation you deserve.
Schedule A Free Initial Consultation With A Newport Beach Attorney Today If Your Life Insurance Claim Was Denied
With more than 60 years of insurance claims legal experience, the attorneys at McKennon Law Group represent clients in disputes with insurance companies in California and nationwide. Nationally recognized, we have helped hundreds of clients obtain their improperly denied life insurance benefits. We provide free initial consultations to any California resident in need of help with their life insurance premium or a denied life insurance claim.
Schedule a free, no obligation consultation with our Newport Beach life insurance lawyers today to get the help you deserve.