Most insurance companies put profit margins above their customer’s needs. They will make a lot of money by denying clams—but if they deny claims they should have paid, then they’ll make even more.
The underhanded tactics some insurance companies use to deny claims range from unethical to illegal, and include racism, ignoring clients and leaving customers in the dark as to what their coverage actually includes.
Here are the most common ways insurance companies are denying their customers’ claims:
- Policy language. The terms in any official document can be difficult to understand. But in the case of your insurance policy, the wording is deliberately confusing—allowing the provider who wrote it plenty of “wiggle room” when you file a claim.
- Conflicting timelines. If you ask when a person’s coverage stops or starts, you may get two different answers depending on who you ask. Many customers assume their coverage starts on the date of their first payment, but the company may argue you must wait until the first day of the following month—or even weeks into the future—for your coverage to begin.
- Discrimination. When you applied for your policy, you probably provided plenty of personal information—such as income, number of dependents, and your living situation. It may surprise you to know that this routine information can be used against you, since many insurance companies will deny coverage to those with low credit scores.
- Canceling for a call. Waiting on hold for a service representative is often annoying and time-consuming—but it can also hurt your coverage. Policyholders who call for information about a claim may be “red flagged” as trouble makers, and be denied when it’s time to renew their policy.
- Rescission. Some companies will “take back” their policies altogether if they are losing too much money by paying for your care. Patients with serious injuries, cancer treatments and other costly medical needs are often abandoned by their so-called “providers.”
Fortunately, there is somewhere to turn when your life insurance policy has been denied. Contact Life Insurance Lawyers, LLC to speak with an attorney, and get started on your case today.