Delayed Life Insurance Claims

Those left behind after the death of a loved one count on life insurance proceeds to help them pay the bills and provide much needed financial security. Every day that goes by without those funds is a day with even more stress and anxiety during an already difficult time. At Life Legal, we’ve seen the anger, frustration, and confusion of those who get strung along by a life insurer that won’t satisfy its obligations and pay what it owes when it owes it. When life insurers drag their heels and delay payment of claims, the experienced life insurance attorneys at Life Legal quickly step in, taking all needed steps to end the excuses and roadblocks and get our clients the money they deserve.

Why would a life insurance company make life harder for beneficiaries who are grieving the loss of a loved one and trying to navigate their new, potentially perilous financial situation? Sometimes, they do so for no good reason other than to delay writing a check as long as possible with the intent to ultimately deny the claim. Other times, however, the delay is the result of a legitimate legal issue or concern that must be resolved before payment can be forthcoming. Such issues include:  

• The beneficiary on the policy is a minor: When an insured lists a minor child as the beneficiary of a life insurance policy, the insurer may delay the claim because a minor cannot receive the proceeds of a life insurance policy without a legal guardian to help manage funds.
• The life insurance policy was included in a will: A life insurance policy is a type of contract that is usually separate and distinct from a will. However, when a person includes a life insurance policy in his or her will, any discrepancies between the will and the policy can create confusion and result in life insurance claim delays.
• The beneficiary was not updated following a life change: When people experience major life events, such as marriage, divorce, or the birth of a child, they typically want to change beneficiaries on their life insurance policies. Sometimes, however, people forget to do so, resulting in several people claiming the right to policy proceeds. When this occurs, a claim will almost certainly be delayed while the insurance company prepares to file an interpleader action in court to determine the lawful beneficiaries.
• The insured named a group as beneficiary: When a person names a category or group of people as the beneficiary of a life insurance policy, it can result in a life insurance claim being delayed as the insurer gathers the information they need to identify the pool of beneficiaries.

When a life insurance company delays a claim, it hopes that the claimant will simply accept the delay without complaint or pushback. The longer the insurer believes it can get away without paying, the longer it will take for them to write a check – if they do so at all. That is why it is important to respond to insurance company foot-dragging as quickly as possible. But moving fast may not be enough. To give yourself the best chance of receiving your life insurance proceeds as soon as possible, you should contact an experienced life insurance attorney for assistance.

At Life Legal, all we do is help loved ones and beneficiaries get the insurance proceeds and other benefits that they have been promised. We know insurance company tactics, and the insurers know that we mean business. When you come to us for assistance with your delayed life insurance claim, we will help you navigate the process while aggressively pursuing compensation on your behalf.

If a life insurance company is delaying payment of your claim or otherwise playing games with your financial future, please contact us today to schedule a free consultation with one of our talented life insurance attorneys.