Unfortunately, we do not live in a perfect world where every insurance claim is quickly handled and paid out. Sometimes, even when a person has a legitimate claim to make, they wind up getting into Insurance Disputes in Miami.
When this happens, they could very likely end up getting denied altogether. If this happens to you, then it is important to get some help from an Attorney Insurance Law Firm in Miami. But it is best to try and prevent denials in the first place. To do that, read through these common reasons life insurance claims get denied.
This might sound confusing, but it is really just a term that means the information provided by the insured on the life insurance application does not match the information found when an insurance company investigates a claim. These investigations are a result of the insurance company contesting the policy, which they can do if the insured died within two years of the start of the policy.
Just contesting the policy or finding differences between the life insurance application and the revealed information is not enough to deny a claim. The previously unknown information has to be something that could reasonably impact the risk of the insured dies.
Lack of Policy Payments
Many of the claims that get denied every year are a result of something called a policy lapse. This occurs when the owner of a life insurance policy does not pay their policy premiums on time. At which point, the policy may lapse and no longer cover the insured.
So even if you have a legitimate claim to make on a life insurance policy, the insurance company could use non-payments of your insurance premiums to say that your policy has lapsed and then deny your claim.
One of the common tactics used by insurance companies to avoid having to pay claims is to include ambiguously worded exclusions within a life insurance policy. This lists scenarios in which the policy would not cover the deceased. These exclusions are purposely designed to include as many situations as possible, so that if your claim happens to even come close to one of the exclusions listed in the policy, then they can justify denying your claim.
If this happens to you, then it is important to get the help of an Insurance Attorney in Miami to help you counteract the situation.
Lack of Beneficiary
Whenever an insurance claim is made, there needs to be a particular person or group listed on the file as the beneficiary. They are who will receive the money that is paid out as a result of the claim. If there is no beneficiary listed on a policy, then this could result in major issues in processing your claim.
At the very least, this will likely result in your claim being delayed, but it could also mean that it gets outright denied by the insurance company.