Life Insurance Lawyers need to start out with some basic knowledge. This Blog site provides a lot of information that is vital to know when a life insurance claim is being denied. Here is some very elementary information.
Life insurance pays a stated amount of benefits to the beneficiary upon the insured’s death. Typically, the policy has a “face amount” — that is, a stated value that is payable upon the insured’s death. Some policies may offer increased benefits if the insured dies from certain causes. For example, some policies pay “double indemnity” benefits if the insured dies in an accident.
“Term” policies pay a fixed amount stated in the policy. Whole life policies accumulate cash value, and may pay the face amount plus any accumulated cash value. On the other hand, if the policy allows the insured to borrow against the policy, the death benefit may be reduced by the amount of any outstanding loans.
Issues affecting coverage may arise at the time the policy is issued, if the insured does not accurately disclose his heath or other material information, or it the insured dies or his health materially worsens before the policy is issued. Disputes may also arise if the insurer refuses coverage.
Disputes may arise over the performance of the policy, if the insurer represented a certain level of premiums but fails to adhere to that representation.
Upon the insured’s death, questions may arise regarding: whether the insurance was still in effect; whether the insured is really dead; whether the insured died from a covered cause; and who receives the life insurance proceeds.
These are just a few of the potential reasons for refusal to pay the policy proceeds. An Experienced Life Insurance Attorney must be consulted when a claim for life insurance benefits is denied.