“Peace of mind” is a phrase often tossed about in myriad contexts applicable to daily life. It is promoted, for example, when an individual has accrued enough savings to withstand an unexpected financial hit. It is soundly on display when a borrower has made the final payment on a home. It resonates with a parent when a child makes purposeful strides toward adulthood.
And it is soundly enhanced for any provider who secures adequate protections for family members well into the future. The vehicle for achieving that goal is quality life insurance.
We underscore that at the proven national disability legal offices of the ERISA Law Center. We note on our website that, “People often spend many years paying for life insurance premiums to get the peace of mind that their loved ones will have financial security after their passing.”
When expected life insurance protection is undermined
Insured beneficiaries routinely benefit from life insurance policies, of course. Unfortunately, though, it is far from uncommon for insurers to contest benefits in the wake of an insured’s passing.
They do so for many reasons, including these:
- Interrupted premium payments
- Questions regarding beneficiary identities
- Claimed inaccuracies re application information
- Contestability issues (claim rejections within stated period)
- Policy changes owing to family adjustments (e.g., death or divorce)
- Reliance on arguably ambiguous policy exclusions allowing for denial
Those bulleted entries comprise but a partial listing of catalysts cited by insurers to either deny or delay contracted-for life insurance benefits. There are many others, as well.
And it merits noting that none of those insurer-authored arguments are routinely successful in contesting claims. A life insurance provider must offer logical – and, importantly, legal – reasons for refusing to pay out on a claim.
An experienced disability law team will insist that it does so or that it promptly follows through on contractual duties following an ability to make persuasive legal arguments.