The Most Common Reasons We See for Life Insurance Claim Denials

A life insurance policy is supposed to protect you and your family in the event of death. But some life insurance companies deny benefits for many reasons. If you are the beneficiary of a life insurance policy that was denied, don’t give up.

Some insurance companies will deny life insurance benefits due to a late payment.  This can frustrate a family they may feel that they will never secure proceeds from a life insurance policy. There are many reasons an insurance company may “try” to deny your claim for life insurance benefits.

The most common reasons we see for denials are:

1. Death Within the Contestability Term. Typically within the first two years of taking out the policy
2. Late Payments. If payments were made late or not at all or if the insurance company misapplied the payments to the account, then you can expect a denial.
3. Material Misrepresentation. If the insurance company believes that the insured did not disclose all important factors in the application of life insurance benefits, then they will deny the claim.
4. The Exclusion Clauses. For certain activities and deaths like suicide or engaging in high-risk sports like skydiving.

Each of these common denials can be complicated. But an experienced life insurance benefits lawyer can analyze the specific language of your life insurance policy, applicable laws, regulations and rules to determine whether the denial was proper.

At Henson Fuerst, often times we find that the insurance company may be denying the claim unfairly, trying to stall or harass the beneficiaries. Why do they do this? Because denying claims can add up to tens of millions of dollars of profits for these life insurance companies.

So if you are getting the run around or any type of denial or delay, call Henson Fuerst at (919) 781-1107 to learn more about your legal rights with life insurance policies.

When you call, you will speak with one of our experienced North Carolina Life Insurance Benefits Attorneys absolutely free. We will assess every aspect of your insurance claim and determine if we are able to help you recover money owed to you under the life insurance policy. Even if your request for life insurance benefits has been denied, Henson Fuerst may be able to help.

Call Henson Fuerst, Because Your Case Matters