Insurance companies do not care about your life or your problems, but they do care about your money. Insurance businesses want to take in as much profit as they can by selling premiums, and keep it by paying out as little as possible—even when they are presented with legitimate claims.
Here are just a few challenges policyholders may face:
- Stalling. Life insurance claims are usually paid within two months of the date of death. If your benefit payment is late, you may call the company only to find there was a problem with the paperwork, or that they “never received” the death certificate. In addition to grieving and trying to provide for your family, you now have to suffer through a fight with the insurance company.
- Life Insurance Delays. Insurance companies know that delaying a claim can sometimes be as profitable as denying it. The longer they string you along, the more likely you will eventually give up—and they will not have to pay out. This can mean weeks of phone calls, false promises, and sometimes outright lies.
- Life Insurance Denials. A claim may be denied because of a “misrepresentation” on the part of the insured. For example, if your loved one was a smoker and failed to disclose the information, the insurance company may deny the life insurance claim—even if the fact had no impact on the insured’s cause of death.
Many people will simply give up after their legitimate life insurance claim has been denied, even though they desperately need the income. With all of the pressures going on, taking on the insurance company is just too much for them to bear. But the important thing to remember is: you should never give up on a life insurance denial without the advice of a life insurance lawyer.