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Why Do Life Insurance Claims Get Denied?

Why Do Life Insurance Claims Get Denied?

Posted on: 10/01/2018

Insurance companies will deny a beneficiary’s request for life insurance benefits once the policyholder has passed for a few key reasons. Some denials can result in a simple delay of benefits that can be easily addressed, while others will need to be formally appealed.

In any case, life insurance policy payments can have a significant impact on the lives of the policyholder’s beneficiaries, and any deserving claimant has a legal right to access his or her funds in a timely manner.

Valid Reasons for Life Insurance Denials

Insurance companies can delay or deny a claim for benefits if the policy is under two years old. This is known as contesting the claim. They will do this if they feel the information originally presented on the policy has been misrepresented or is false. An example could be a smoker who has lied on a risk assessment to obtain a lower premium. Doing so could void the claim.

Claims can also be contested if the death of the policyholder is currently under police investigation. Once this two-year period has passed, the insurance company will be obligated to make a payment of benefits unless fraud can be proven.

When a Claim Is Wrongfully Denied

More often that you might expect, insurance companies will deny life insurance claimants without fully reviewing the information on the claim in the hopes of protecting the company’s profits. Part of an enormous money-making industry, life insurers lose money when they have to pay out on claims.

If an insurance adjuster fails to review your claim in its entirety, delays your benefits without cause, or fails to properly investigate the validity of your claim before issuing a denial, you could very well have been wrongfully denied your claim for life insurance benefits.

You will have the right to file an appeal following the denial of your claim, and we may even be able to pursue a bad faith insurance suit.

The Life Insurance Appeals Process

Once we determine that filing an appeal is the best course of action for your case, we will begin by filling out the necessary paperwork and meeting or speaking with the insurance adjuster who denied your claim. We can also meet with the insurance company’s regional department officials to discuss your appeal if there is no apparent reason for your claim to have been denied.

Get in Touch with a Toronto Life Insurance Lawyer

If we can answer any additional questions you may have about a policy you’ve been named the beneficiary of, or if you are a beneficiary who has been denied a claim for benefits, contact a qualified Toronto life insurance lawyer at Mirian Law Firm.

We have the experience to win an approval for the life insurance benefits you’re entitled to. Give us a call at 647-556-5888 or fill out the contact form below to schedule your no-obligation consultation today.

How to Tell a Disability Denial Was Made in Bad Faith

How to Tell a Disability Denial Was Made in Bad Faith

Posted on: 28/11/2017

Purchasing disability insurance is supposed to give you peace of mind in the face of a serious injury. Unfortunately, more and more policyholders who are in need of the benefits they thought they were securing in case of an emergency are being unreasonably denied the money they need to support themselves while they are unable to work.

If you are one of these people, read on to find out more about bad faith disability insurance denials and how to go about obtaining the benefits you’re entitled to.

What Is Considered Bad Faith?

A bad faith denial of disability insurance is when your claim for benefits is being wrongfully denied or delayed. The insurance company isn’t holding up its end of the contract.

Some of the most frequently seen acts of bad faith include failing to approve and release benefits in a timely manner, bullying claimants into accepting lower settlements than they are entitled to, improper denials to protect the company’s financial assets, and coercing unnecessary information to discourage policyholders.

Speak with a disability insurance lawyer at Mirian Law Firm if you think your insurance company has used any of the above tactics in delaying or denying your claim. You have a right to these benefits, and we won’t allow the insurer to intimidate you any further.

Obtaining the Benefits You’re Entitled To

After we are able to achieve an approval for your claim, you may be entitled to some additional types of compensation if the insurance company has acted in bad faith.

In addition to the compensation listed in your original contract, you may be able to seek funds for stress and anxiety caused by the delay of your benefits and losses stemming from the delay, including damage to your credit score and late fees for unpaid bills.

Some cases in which the insurance company was particularly malicious and engaged in gross misconduct may entitle you to punitive damages, which will hopefully prevent this from happening to another person in the future.

The insurance company isn’t going to get away with its dishonest behavior. Any denial made in bad faith is an insult to policyholders everywhere who are counting on insurers to survive after being diagnosed with a disabling condition.

Your fight can be made easier with the assistance of a Mirian Law Firm disability insurance lawyer. We are prepared to send a letter of demand for your payment and even bring the insurer to court if necessary. You can rest assured that our experienced attorneys will be on your side.

Work with a Toronto Disability Lawyer

Are you ready to take control of your disability and obtain the benefits you paid for when you purchased your insurance policy? Contact a Toronto disability insurance lawyer at Mirian Law Firm and gain access to your benefits as quickly as possible. You can fill out our contact form below or give us a call at 647-556-5888 to schedule your free, no-obligation consultation today.

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