It’s painful enough to mourn the loss of a family member. You weren’t expecting to then receive a denial letter after applying for life insurance benefits. As it turns out, your loved one did not have a spotless record of paying premiums. Now the insurer is saying that the lapse in payment means you are not entitled to collect the benefits you were counting on. If you’re facing a claim denial for failure to pay premiums, all is not lost. Here’s what you should know.
What to Do About a Denial for Failure to Pay Premiums
First, it’s important to avoid giving up as soon as you receive the denial letter. Failure to pay premiums does not always mean a person’s beneficiary cannot collect life insurance benefits. In reality, the lapse in payment may have resulted from the insurer’s error, such as failing to send bill notices or warn of an upcoming lapse in payment.
In addition, insurance companies must follow certain laws when responding to an insured’s failure to pay his or her premium. These rules often change, causing insurers to frequently adjust their procedures. Failure to do so might mean the insured was not responsible for missing payments. It might not stop a beneficiary from receiving a denial for failure to pay premiums, however.
That’s where an experienced life insurance lawyer can help. We can investigate the denial and stand up to the insurance company if the decision was illegitimate. We work to make the outcome right, so our clients can focus on moving forward.
What to Do Next
If the insurance company denied your claim for benefits, it must give you a reason for denying your claim. The insurer also has the burden of proof that the denial was legitimate. In other words, if it cannot prove to a judge that your claim was legally denied, the company will have to pay you the full amount in your loved one’s policy.
If you received a claim denial for failure to pay premiums, here’s what you can do right now:
- Get everything in writing. Call the company and demand a written explanation of the reason for denying your claim.
- Contact an experienced life insurance attorney. A lawyer with experience wading through policy language and battling insurance company tactics can tell you whether you can appeal the claim denial.
The team at Life Insurance Law, LLC are ready to stand with you. No matter where you are in the U.S., we can connect you with a skilled attorney who can demand payment from the insurance company that failed to pay the benefits entitled to you. To get started, complete our online contact form or call 215-531-7961.
