All about Life Insurance Denials

Jan 12

Whenever a loved one passes away, the last thing their family wants to deal with is a hassle with the insurance company. Unfortunately, as is the case with many insurance companies, sometimes there are issues and the life insurance claim gets denied. 

The fact that a life insurance company could deny someone’s claim shocked me, and I had to learn more about it. This blog post is a summary of all the information I learned — keep reading! 

Why Do Insurance Companies Deny Life Insurance Claims?

There are a variety of reasons why a life insurance company may deny your claim. Here are some of the reasons insurance companies have given for denying life insurance claims:

  • Presence of medical conditions not disclosed to the insurance company
  • Disagreements over the cause of death
  • Failure to contest a lack of coverage in the time period stipulated by the policy
  • Disagreements over who the proper beneficiary is
  • Misrepresentation of the insured in the original claim

Why it Matters…

Not receiving your life insurance claim can place a huge burden on both you and your loved ones. Here are some reasons why a denial of a life insurance claim should be handled as soon as possible:

 

  • Financial Burdens: After a loved one with life insurance passes away, the money from their claim can help the family through any difficult financial circumstances that may arise in the future. This is especially important if the loved one who passed away was the breadwinner for the family. Without the life insurance claim, families may be evicted from their homes or forced to declare bankruptcy. 
  • Emotional Toll. Battling with an insurance company is painful in most normal situations, but dealing with an insurance company after the death of a loved one can be extremely painful. While attempting to grieve the death of their loved one, loved ones will have to recount the details surrounding their death, which can make the loss of their loved one even harder to get over.
  • Delay of a Loved One’s Plans: When you are denied your loved one’s insurance claim, you may be unable to fulfill your loved one’s plans, whether that be a funeral, private cremation, or some other ceremony. Not being able to carry out your loved one’s final wishes can deny you and your family closure and the chance to properly grieve.

 

What to Do

If you are being denied a life insurance claim, it is important to know that you have options. The first thing you should do is contact a life insurance attorney as soon as you possibly can. An attorney will help you fight for your right to your life insurance claim, and they’ll be able to take the company to court if the situation gets to that point. 

Remember, never attempt to represent yourself. A life insurance attorney has years of specialized experience that makes them an expert at holding insurance companies to justice. Do yourself a favor and hire an attorney.

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Uninsured and Underinsured Motorist Coverage

Jul 21

For U.S. drivers to be able to renew their driver’s license and car registration, they will have to prove that they carry auto liability insurance. Besides these, having coverage will also keep their license from being suspended, their driving privilege from being taken away, and the drivers themselves from being issued a traffic ticket for violation of their state’s mandatory insurance law. Getting involved in a car accident, however, which happens to be an uninsured driver’s fault, can result in big financial trouble for them.

To make sure that drivers are fully protected, especially from uninsured drives, some states require them to also carry either or both the Uninsured motorist (UM) coverage and Underinsured motorist (UIM) coverage. Uninsured motorist coverage is designed to cover the economic losses and damages suffered by victims in accidents wherein the at-fault driver does not carry insurance. This coverage also serves as a perfect financial safety net in the event of hit-and-run accidents, as well as in accidents wherein a stolen vehicle is involved.

Underinsured motorist coverage, on the other hand, is designed as a supplement for any insufficiency in the policy limit of an at-fault driver. This is usually the case if the at-fault driver carries only the minimum liability coverage required in his or her state. This makes the amount of his or her policy not enough to cover the full amount of damages suffered by the victim.

The mandated auto liability insurance, with the addition of UM and UIM, plus the many other factors considered by insurance providers, such as a driver’s age, driving history, driving experience, and type of car used, make insurance policies just too expensive for millions of drivers. It is because of this that many drivers rather risk driving uninsured than pay costly premiums.

According to Abel Law Firm, however, not carrying auto insurance can be more disadvantageous for a driver, especially if he or she causes an accident. Insure on the Spot is one of the many independent car insurance firms which offer clients free online insurance quotes which will help them compare different insurance deals for the purpose of finding the best, yet cheapest, policy. With help from an independent car insurance firm, getting insured is not only cheap; it is also fast and definitely easy.

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