Life insurance provides families with financial support when a loved one passes away – but you may have your life insurance claim denied. A qualified life insurance attorney, like Saxton Law Firm in Kansas City, MO, may be able to help answer your questions. We can help answer questions like – why do life insurance claims get denied? We can help you determine how much life insurance coverage you need and much more.
When Does a Life Insurance Claim Not Pay Out?
Did you know that life insurance companies paid out $790.8 billion in claims in 2021? That is an incredible amount of money and when you have suffered a death in the family and have a life insurance claim denied, we know that you want to know why that life insurance claim may not be paid out. We may be able to help answer that question here at Saxton Law Firm.
There are six key reasons why a life insurance claim will not be paid that we will cover here:
- Life insurance premiums have not been paid in full and the policy has lapsed.
- The policyholder withheld information or did not provide the truth on their life insurance application.
- The policyholder’s death was the result of suicide – if the policy has specific language and a suicide clause.
- The policyholder’s death was the result of criminal or illegal activity.
- The term life insurance policy expired and the policyholder outlived the policy.
- The policyholder passed away during the waiting period – the period between the purchase of the policy and when it takes effect.
How Long Does it Take for a Life Insurance Claim to Be Paid?
Have the premiums been paid on the life insurance policy you plan to claim? Was the death due to natural causes? In most cases – when life insurance policy premiums are paid – the insurance provider will pay the beneficiary named in the policy. The timeframe for a beneficiary to receive a life insurance payout ranges from 14 days to 60 days – based on the value of the policy, claim procedures, the policy details and local laws.
How Do Life Insurance Payouts Work?
Are you the beneficiary on a life insurance policy? Has the policyholder passed away? When the insurance carrier receives the death certificate and claim forms – barring any setbacks or delays – you will be able to receive your insurance payout. Insurance beneficiaries are paid via three standard methods – a lump-sum payout, a retained asset account or a specific income payout.
Do you have questions about your life insurance policy? Do you want to know – why do life insurance claims get denied? We can help answer your life insurance questions at Saxton Law Firm in Kansas City. Contact our legal team today for more help with your life insurance claim!