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What should you do if a life insurance claim is denied?

On Behalf of | Oct 13, 2023 | Life Insurance Denial

Receiving a life insurance claim denial can be a daunting experience. After years of the policyholder making timely premium payments, it’s only natural to expect the policy to work when it’s most needed. However, a denied claim isn’t the final verdict.

Life insurance companies aren’t infallible. Sometimes, they make an error in their evaluation. By understanding the reason for the denial and addressing it effectively, there’s a chance to overturn the decision.

Understanding the reason is key

Upon receiving a denial letter, the first step is pinpointing the rejection’s exact reason. The letter itself should provide this information. Common reasons include discrepancies in the application form, policy lapse due to non-payment or the cause of death not being covered.

Gather all necessary documents

Once you’ve identified the reason, gathering all pertinent documents related to the claim is crucial. This might include medical records, policy documents and other relevant paperwork. These documents can serve as evidence if you must challenge the insurance company’s decision.

Reach out to the insurance company

Upon receipt of a denial of benefits letter, you can write to the insurance company and obtain a copy of its file on the policy holder.  That file may contain the relevant information necessary to successfully appeal its decision to deny paying the life insurance claim.

Understanding policy fine print is crucial

Understanding the specifics of your life insurance policy can make a significant difference. It’s not uncommon for policyholders to overlook specific clauses or conditions that can affect their claims. Always ensure you’re familiar with all terms and stipulations.

Having someone on your side who can help you navigate the complex appeals process is beneficial. Just remember that there are time limits for these appeals, so be sure you read all notices sent to you and act swiftly.