HOLD LIFE INSURANCE COMPANIES ACCOUNTABLE
Life Insurance Claims Denied?
Hi, I’m Erin
My life’s calling is to hold insurance companies accountable for the promises they make.
Our law firm focuses on Arizona life insurance benefits law and we’d love to help you out.
Was your life insurance claim denied? We are here for you.
If you are a beneficiary on a life insurance plan and your request for benefits was denied, you may be confused and frustrated, as well as grieving. Dealing with the death of a loved in addition to a denial of benefits can be disheartening to say the least.
Life insurance is a type of insurance plan offered through employment or purchased by an individual (the policyholder), who then names other individuals as beneficiaries of the benefits.
During their lifetime, the employer or policyholder pays regular premiums to keep the coverage intact. If and when the policyholder dies during the policy being in force, the life insurance plan pays out a monetary benefit to the beneficiaries designated by the policyholder.
The amount of the monetary benefit can vary based on the coverage purchased. Some policies even include a living benefit, which can be used for medical care in the event that the policyholder comes down with a serious or terminal illness.
Generally, life insurance is “term” or “whole” life; most term life insurance is in place until a policyholder reaches an age akin with retirement, such as 65. You pay premiums for protection should you pass away before expiration of the policy.
What is a Life Insurance Waiver of Premium (LWOP) benefit?
Some life insurance policies have a “waiver of premium” benefit, which waives the payment of premiums as long as you meet the definition of disability under the life insurance policy. In our legal practice, we often encounter denied LWOP claims concurrent with denied long-term disability (LTD) claims. Insurance companies or employers who are providing both disability and life insurance benefits will deny both claims at the same time, sometimes using the same evidence to support a denial on both claims.
In most circumstances, we can appeal both the LWOP and LTD denials for you at no additional fee. It’s all too commonplace that we uncover a denied LWOP claim when going through a file and bring it to our client’s attention. Insurance companies love to sneak in the LWOP denial, hoping it will go unnoticed amidst the shock of losing disability income. We frequently encounter claimants totally unaware that their life insurance has been canceled! Even though we do not always see additional fees for assisting with a denied LWOP benefit, we do our best to fight for the reinstatement of your life insurance along with your LTD benefits, because it is the right thing to do. This is one of the many ways in which Ronstadt Law goes above and beyond in representing our disabled clients.
How can I get Life Insurance benefits?
In order for the insurer to pay out life insurance benefits, a number of criteria must be met. It is important for a beneficiary to contact the insurance company as soon as possible after the death of the policyholder in order to get the claim started for the dispersal of the life insurance benefits. There are multiple ways that life insurance policies may pay out life insurance benefits, including as a lump sum or in installments.
WHAT YOU NEED TO KNOW IF YOUR LIFE INSURANCE CLAIM WAS DENIED
Below we’ve listed the many reasons that an insurance company could cite when denying to pay out life insurance benefits. What they won’t tell you is that, most of the time, they have a financial interest in denying your claim and holding onto their money.
Was your life insurance claim denied? We are here for you.
If you are a beneficiary on a life insurance plan and your request for benefits was denied, you may be confused and frustrated, as well as grieving. Dealing with the death of a loved in addition to a denial of benefits can be disheartening to say the least.
What is a Life Insurance Waiver of Premium (LWOP) benefit?
Some life insurance policies have a “waiver of premium” benefit, which waives the payment of premiums as long as you meet the definition of disability under the life insurance policy. In our legal practice, we often encounter denied LWOP claims concurrent with denied long-term disability (LTD) claims. Insurance companies or employers who are providing both disability and life insurance benefits will deny both claims at the same time, sometimes using the same evidence to support a denial on both claims.
In most circumstances, we can appeal both the LWOP and LTD denials for you at no additional fee. It’s all too commonplace that we uncover a denied LWOP claim when going through a file and bring it to our client’s attention. Insurance companies love to sneak in the LWOP denial, hoping it will go unnoticed amidst the shock of losing disability income. We frequently encounter claimants totally unaware that their life insurance has been canceled! Even though we do not always see additional fees for assisting with a denied LWOP benefit, we do our best to fight for the reinstatement of your life insurance along with your LTD benefits, because it is the right thing to do. This is one of the many ways in which Ronstadt Law goes above and beyond in representing our disabled clients.
How can I get Life Insurance benefits?
In order for the insurer to pay out life insurance benefits, a number of criteria must be met. It is important for a beneficiary to contact the insurance company as soon as possible after the death of the policyholder in order to get the claim started for the dispersal of the life insurance benefits. There are multiple ways that life insurance policies may pay out life insurance benefits, including as a lump sum or in installments.
WHAT YOU NEED TO KNOW ABOUT DENIED LIFE INSURANCE CLAIMS
Below we’ve listed the many reasons that an insurance company could cite when denying to pay out life insurance benefits. What they won’t tell you is that, most of the time, they have a financial interest in denying your claim and holding onto their money.
Hi I’m Erin,
My life’s calling is to hold insurance companies accountable for the promises they make.
My law firm focuses exclusively on Arizona disability benefits law and we’d love to help you out.
Why was my Life Insurance claim denied?
There are a number of reasons your insurance company may cite as the basis for your benefit denial:
The death of the policyholder happened during the contestability period. The contestability period is a period of time, often one or two years, immediately after the start of your life insurance policy, during which the insurance company is reviewing your coverage for any potential fraud. If the death of the policyholder occurs during this period of review, the insurer may deny the dispersal of the plan benefits.
The manner of the policyholder’s death is not covered by the policy. Many life insurance plans will not pay out benefits in the event that the manner policyholder’s death is excluded under the policy. Some manners of death frequently excluded under life insurance policies include suicide, drug or alcohol abuse, homicide, illegal activities, and extreme or dangerous activities and hobbies.
The plan premiums weren’t paid by the policyholder, leading to a lapse of coverage. If the policyholder either accidentally or intentionally stops paying the premiums on their life insurance plan, their coverage may lapse. If coverage on the plan lapses, the insurance company is no longer required to pay out on the plan in the event of the policyholder’s death.
The policyholder misrepresented information about their medical conditions or lifestyle. The insurer may refuse to pay life insurance benefits if they find that the policyholder misrepresented information about factors that could contribute to their death.
These are some of the many reasons that an insurance company could cite when denying to pay out life insurance benefits. What they won’t tell you is that, most of the time, they have a financial interest in denying your claim and holding onto their money.
Frequently Asked Questions
Can a life insurance company deny a valid claim once the insured dies?
Insurance companies routinely act in bad faith, even when they shouldn’t. If all of the proper criteria are met, a life insurance claim should be approved in the event of the policyholder’s death. If a life insurance claim was denied and you believe this denial was unreasonable or unjust, you may have significant remedies available to you in holding the insurer accountable. Contact the experienced team at Ronstadt Law.
Can an insurance company deny claims or or rescind coverage based on preexisting conditions
It depends, and the answer will be a fact-intensive analysis. As long as the conditions were disclosed to the insurer, then the conditions should be covered unless expressly excluded. There are contestability periods and other pertinent issues that the Firm can evaluate for you to determine if the denial or rescission of coverage was done in bad faith. Contact our experienced team for a free consultation.
does a life insurance claim usually get denied the first time?
Life insurance claim denials should be uncommon, especially if the policyholder paid all premiums and was honest about conditions and lifestyle when securing the coverage. Sometimes, the insurance companies will claim exclusions under the Policy depending on the circumstances of death to avoid financial responsibility. In these instances, it could be necessary to hire experts to demonstrate that the cause of death was not excluded from coverage. Allegations of suicide or drunk driving are sometimes used by the insurance companies to avoid paying a claim. We are here to help you fight the insurance company during what is likely to be an already difficult time of grief and shock. If you are facing a denied life insurance claim, contact the experienced team at Ronstadt Law.
Can a life insurance claim get denied because of a lie about smoking?
Because smoking is a risk factor that can increase your chances of untimely death, it is not a good idea to lie about smoking to your life insurance provider when you are applying for coverage. Lying about a risk factor such as smoking could lead to a claim denial once the policyholder dies. It is best to be honest with your life insurance provider so that your benefits aren’t put at risk once you pass away.
What percentage of life insurance claims are denied?
According to Forbes, a majority of life insurance claims are approved – only about .5% of life insurance claims were disputed in 2019 as reported by the American Council of Life Insurers (ACLI). If, for any reason, your life insurance claim is denied, you should contact an experienced attorney for assistance. Just because life insurance claims are reported as often approved, this does not mean that they do not get denied in bad faith.
what should i do if life INSURANCE claim is denied?
If an insurance company is refusing to pay out life insurance benefits, you should contact an attorney as soon as possible. Insurance benefits can be complicated, so it is imperative that you have an experienced and compassionate attorney on your side. Contact the skilled attorneys at Ronstadt Law for a free consultation.
Can a life insurance claim be denied due to alcohol use?
If your life insurance company considers alcohol use to be a risky behavior or contributing factor to the policyholder’s death, then yes, they may deny the claim based on alcohol use. Many life insurance policies include language that allows the life insurance provider to deny claims if the death is related to substance use or abuse, such as alcohol use. Oftentimes, you will need to hire an experienced attorney to prove the true cause of death and disprove the insurance company’s theory of death. Contact us to learn more.
What are the main reason why life insurance claims are denied?
- The death of the policyholder happened during the contestability period. The contestability period is a period of time, often one or two years, immediately after the start of your life insurance policy, during which the insurance company is reviewing your coverage for any potential fraud. If the death of the policyholder occurs during this period of review, the insurer may deny the dispersal of the plan benefits.
- The manner of the policyholder’s death is not covered by the policy. Many life insurance plans will not pay out benefits in the event that the manner policyholder’s death is excluded under the policy. Some manners of death frequently excluded under life insurance policies include suicide, drug or alcohol abuse, homicide, illegal activities, and extreme or dangerous activities and hobbies.
- The plan premiums weren’t paid by the policyholder, leading to a lapse of coverage. If the policyholder either accidentally or intentionally stops paying the premiums on their life insurance plan, their coverage may lapse. If coverage on the plan lapses, the insurance company is no longer required to pay out on the plan in the event of the policyholder’s death.
- The policyholder misrepresented information about their medical conditions or lifestyle. The insurer may refuse to pay life insurance benefits if they find that the policyholder misrepresented information about factors that could contribute to their death
What should I do if my life insurance claim is denied?
If an insurance company is refusing to pay out life insurance benefits, you should contact an attorney as soon as possible. Insurance benefits can be complicated, so it is imperative that you have an experienced and compassionate attorney on your side.
Contact the skilled attorneys at Ronstadt Law for a free consultation.
Marc M. | 2021
The perfect choice! I’m so pleased that I choose Erin and her team to represent me. She had everything I was looking for in a disability attorney: professional, knowledgeable, respectful, caring and passionate about her work. She was always on point and nothing got passed her! Her team is equally qualified and efficient! 100% no reservations I would recommend her and her team!
Scott D. | Flagstaff – 2018
Erin Ronstadt was my LTD attorney. She is very knowledgeable on Employee Plans and the ERISA law. She was very easy to work with, compassionate and understanding. She kept me informed on the status of my case and kept me updated on the next steps. She did an awesome job winning my case and got me much more than expected.
Marshall S. | Tempe – 2018
Erin Ronstadt is a competent and caring attorney and we are pleased with our settlement. We felt very comfortable working with Erin and her assistant, we would not hesitate to work with her again.
Daryl S. | Sedona – 2018
Unfortunately life happens and sometimes we have to hire an attorney. Erin and her staff have made an uncomfortable situation more tolerable. The entire staff has worked hard on our behalf and made us feel included and heard along the way.
Michelle – 2019
“Erin and her team were the shining light in this otherwise extremely long and difficult experience.”
Robert I. | 2021
I’ve worked with hundreds of attorneys over the past 30 years and Erin and her team (Merry) are truly excellent. Professional, knowledgable, responsive and so very pleasant.
Ray M. | Finisterre – 2017
I had a great experience with this firm. Everyone here is extremely courteous, kind, and professional. My attorney, Erin Ronstadt is very knowledgeable and truly cares about her clients. She has done a terrific job with my case and I would highly recommend her for anyone that needs representation!
Erika B. | Mesa – 2017
I highly recommend Erin Ronstadt if you need help with your disability case. Erin was very knowledgeable and compassionate. I knew I was in good hands after our consultation. Her advice led to a successful outcome for us. If there were more than 5 stars I would give them.
Bob S. | Surprise – 2014
Did a great job on my case——-we WON in court!
Contact the attorneys at Ronstadt Law to review denied life insurance claims
Case evaluations are 100% free and you are under no obligation to hire our law firm. We will vigorously represent you and not back down to insurance companies.