Four Common Reasons for Denied Life Insurance Benefits

The passing of a loved one is always hard on surviving family members. In addition to their grief, there are often concerns over finances. Life insurance benefits available through your employer can help to ensure they are provided for properly. Unfortunately, insurers often attempt to deny or dispute these benefits. 

Reviewing The Terms of Life Insurance Policies

Employer-provided life insurance benefits provide a safety net when a loved one passes. Before filing a claim, carefully review policy documents to familiarize yourself with the terms. If you do not have a copy, the Employee Retirement Income Security Act of 1974 (ERISA) requires employers to provide them free of charge. 

In reviewing life insurance-related documents, pay close attention to the following: 

• The summary plan description: This will include all the pertinent information you need to know about the policy, including procedures for resolving any disputes that arise;
• The effective date: Make sure that your loved one was covered and met all employee requirements;
• List of exclusions: This will detail any non-covered situations in which payouts will not be made. 
• The amount the policy pays: Depending on this amount, your loved one may have also put a life insurance policy from a private insurer in place. 

Reasons For Denied Life Insurance Benefits

Carefully going through all plan information can help to prevent problems in filing and collecting on life insurance benefits. At the same time, not all insurers are created equal. In addition to the above, check your insurance company’s ratings as well. Paying close attention to any consumer complaints that were made in regard to denied benefits. 

Whether you are a covered employee, a family member who has recently lost a loved one and is currently filing a claim, or are likely to file one in the future, it is important to be aware of the most common reasons for life insurance denials: 

• Disputes over the terms of coverage. Claims that the coverage was not in effect or that the death happened during the contestability period are commonplace. 
• Disputes over the circumstances surrounding your loved one’s passing. Even if your loved one’s cause of death is listed among the exclusions, you may still be able to fight this on appeal.  
• Disputes over unpaid premiums. This can occur due to recklessness on the part of employers or plan administrators. 
• Disputes over undisclosed information. Insurers frequently use investigators to find information that can be used in denying life insurance and other types of claims. 

A Chicago Life Insurance Claims Attorney is Here to Help

At Bartolic Law, we act as a strong legal ally on your side, helping you get the benefits you are entitled to. Call or contact a Chicago life insurance claims attorney online to request a consultation today.