When a life insurance company denies a claim, beneficiaries feel frustrated and angry. Unfortunately, many will pursue no further action.  They will not receive the thousands of dollars their loved one paid into life insurance over the years, all due to an insurance company’s technicality: a missed payment, one missed signature, or an unexplained “filing issue.” It is important that anyone who faces a life insurance claim denial seeks help immediately.  Many people do not realize that there is a time limit to pursuing a case against the insurance company. Here’s what beneficiaries need to know about the statute of limitations for filing a life insurance claim.

In most states, including New Jersey and Pennsylvania, the statute of limitations is two years.  In other words, if your life insurance claim is denied, you have two years from the date of death to pursue legal action against the insurance company.

What happens after this time limit has passed?

That’s where it gets tricky. There are many reasons that relatives pass the statute of limitations, including:

  • Inability to locate the policy
  • Not knowing the deceased relative was covered by life insurance
  • Being told that the claim was invalid by a disreputable insurance agent

While there is a time limit to bring a suit against a life insurance company, there is technically no time limit on collecting valid life insurance benefits.  Life insurance policies fall under Incontestability Law, which states that, as long as the probationary period of the policy has passed, life insurance companies must pay all benefits.

This means that you are legally allowed to collect benefits on your loved one’s behalf as long as the:

  • Policy was in force at the time of death.
  • Policyholder paid all premiums.
  • Personal information on the policy is truthful and accurate.

If a life insurance provider denied your rightful claim, the attorneys at Life Insurance Law can get you the compensation you deserve.  Call us today for a consultation on your case.