Life insurance is meant to provide peace of mind that if you pass away, money will be provided to your loved ones so they do not face financial difficulty at an already emotionally turbulent time. In most instances, this works out, but there are some circumstances in which a life insurance company may refuse to pay out a claim.
This may happen if the insurance company believes that premiums have not been paid or if the insured was not truthful on their original life insurance application. It could also happen if the death occurred because of something that was listed as an exception in the policy – such as engaging in dangerous activities. However, do not assume the insurance company is correct when denying your claim.
Whatever the reason for the denial, the last thing you want your family to do during an already stressful time is to fight an insurance company. Nevertheless, there are some situations where it is necessary.
Here are 4 things you need to know if you have been denied a life insurance claim.
- Find out the reason for the denial.
If a life insurance claim has been denied, it is important to understand that you have rights and options. The first step is understanding why the claim was denied. The insurance company is required by law to provide you with a reason for the denial. The lawyers at Hoffman Law, who have years of experience fighting denied claims, will review your case and why your claim was denied in order to develop a strategy and outline your next steps.
- Appeal the decision.
If your claim has been denied, you can appeal the decision directly with the insurance company. However, you should get a lawyer’s advice before doing this. Each insurance company has its own appeal process, and there will be strict deadlines you will need to adhere to.
- File a lawsuit.
Sometimes, your lawyer may recommend skipping the appeal process and going straight to filing a lawsuit. An insurance claims lawyer can file a lawsuit on your behalf and seek for your claim to be paid out along with interest and legal fees.
Depending on the circumstances of your denial, you may also be eligible for additional damages if the insurance company acted in “bad faith.”
- Negotiate a settlement.
At any point in the process, you may negotiate a settlement with the insurance company. In fact, most insurance claims are ultimately settled outside of court. Your lawyer will review all settlement offers to make sure they are fair and work on your behalf to help you get the best offer possible for your case.
Contact Hoffman Law today.
If you have been denied a life insurance claim, you have limited time to act. Contact Hoffman Law today for help resolving your claim. The lawyers at Hoffman Law have assisted many families whose life insurance claims were denied, helping them retain the compensation they rightly deserve.