We buy life insurance to protect our family’s welfare. It is a form of security that gives beneficiaries much needed financial support when a loved one passes away. Most life insurance companies make good on their policies, paying billions in death benefits annually to beneficiaries.
Still, thousands of claims are denied or contested every year. Some companies deny life insurance claims more than others.
Life insurance companies have a duty of good faith and fair dealing when it comes to evaluating and paying claims. Bad faith denial of life insurance benefits occurs then the insurance company fails to honor its contract.
Our life insurance bad faith law firm knows insurance companies make money by collecting premiums, not by paying out claims. They will resort to many wrongful practices in order to delay or deny valid claims.
You or a loved one may have a policy, or may need to file a claim for death benefits, with any of a number of regional or national life insurance providers, including:
- Banker’s Life
- First Penn-Pacific
- Globe Life
- John Hancock
- Lincoln Financial Group
- Met Life
- Mutual of Omaha
- National Union
- National Western
- New York Life
- North Atlantic
- Sun Life
Possible reasons for life insurance claim denial are diverse. Beneficiaries may be shocked to learn that their provider has based a denial on the pretense of fraud committed by the policyholder. Insurers may allege material misrepresentation or intentional distortion of fact on the life insurance policy application, or self-inflicted harm as cause of death in an AD&D claim, or other allegations of wrong behavior on the part of the applicant.
Types of Life Insurance Policies
Life insurance comes in many forms; some policies have an investment component and some do not. Regardless of the type of policy, life insurance companies can deny a claim in bad faith.
Term Life Insurance is the most basic and affordable type of policy, which offers lump sum benefits for a certain number of years at a specified premium. There is no investment component.
Group Life Insurance Policies involve life insurance coverage under a group benefit plan provided by a private employer to its employees.
Whole Life Insurance entails a set premium throughout the life of the policy, and part of the premium is invested to create a cash benefit as well as the fixed amount payable at death.
Permanent Life Insurance policies provide coverage for the duration of your life.
Universal Life Insurance is similar to whole life in that it pays a cash benefit in addition to the death benefit, yet with more flexibility.
There are many other types of life insurance, such as variable, survivorship, joint, convertible life insurance and more.
It is a sad truth that billion-dollar insurance companies know that they can easily exploit claimants through any and all types of life insurance policies. And when it comes to claim denials, the insurance company will likely prevail over an innocent beneficiary who is not represented by an experienced and resourceful life insurance lawyer.
How Bad Faith Life Insurance Denials Occurs
Policies are often written in such a way that they can barely be understood. The details can often be translated to benefit the insurance company instead of the policyholder. In bad faith life insurance denials, the insurer often claims the decedent misrepresented some fact on the insurance application.
Life insurance claims take place during a time of mourning and grief for the loved one who passed away. Beneficiaries of the deceased may lack the spirit and strength to investigate why their claim was denied. Many insurance companies know this and take full advantage of it.
When Your Life Insurance Company Acts in Bad Faith
It is a tragedy that individuals are trapped in a situation where they simply give up. Or, if they do have the fortitude, many are forced to jump through unreasonable hoops to justify their valid claim.
If you are faced with a bad faith life insurance claim denial, we can help you take legal action against your insurance company. At Marc Whitehead & Associates, we are life insurance denial lawyers committed to righting this wrong.
We handle bad faith lawsuits against insurance companies for rejecting or underpaying policy benefits. We also handle claims against insurers for making omissions or errors that undermine a policyholder’s ability to collect payments.
Insurance companies engage fleets of attorneys to make sure you do not receive your benefits — or that you accept a much smaller settlement. To successfully fight the insurance corporations, attorneys must have a thorough knowledge of insurance applications, practices and insurance law.
Our Attorneys Defend Against Bad Faith Life Insurance Claim Denials
These types of deceptive and illegal actions are not acceptable. The insurance companies should be held liable for their actions. As life insurance denial lawyers, we have a great deal of experience in holding insurance providers accountable to their policies. We are fully prepared to litigate against billion dollar insurance companies on your behalf.
Let us explain your rights under federal and state laws and help you determine the best way to move forward. We will take on the insurance company, while you take care of matters at home.
Schedule a Free Case Evaluation Today
For information about your case, and getting the money you deserve, contact Marc Whitehead & Associates.
It is important that we review your bad life insurance claim denial immediately. Key evidence must be preserved, and documentation is critical.
Our goal is to do everything legally possible to help you receive your rightful compensation. We assist clients in all 50 states. Most bad faith life insurance claims are handled on a contingency fee. That means there are no fees until we recover money for you.
Find out more about what you can do about bad faith insurance company denials.