Life Insurance Claim Denied: Determining If You Should File a Lawsuit [Part I]

If you took the time to research life insurance companies and incurred the expense of paying for a policy, you probably expect your coverage to function as an investment and/or tool for financial security.  While this expectation is reasonable given that the agent probably pitched the policy as offering these benefits, many beneficiaries of life insurance policies are denied the proceeds of the policy.  While not every denial of benefits under a life insurance policy is unjustified, denials are so common that you should not assume that your insurer is fairly evaluating your claim when sending you a denial letter.  In this two-part blog post, our Florida Life Insurance Claims Law Firm provides some advice for determining if you should consider a lawsuit and charting the best approach.

Although policyholders and beneficiaries should hope that a lawsuit against the insurance company will not be necessary, a beneficiary should take certain precautions during the claims process in case a lawsuit becomes necessary.  These precautions include:

  • Gather and Safeguard Relevant Documents: All documents pertaining to your denied life insurance claim should be saved.  Documents like the initial denial letter, a copy of the policy, and any subsequent correspondence with the insurance carrier are essential to challenging the denial.  If you later decide to talk to a Florida life insurance claims attorney, you should bring all of this documentation to the consultation.
  • Refuse a Recorded Statement Until You Have Retained a Life Insurance Claims Lawyer: If the insurer requests a recorded statement with anyone in your family, you should politely defer participation and explain you need to consult with an attorney prior to any meeting.  Any further discussions regarding a statement should be left to your lawyer.
  • Take Advantage of a Free Consultation: Many life insurance beneficiaries are hesitant to schedule an appointment with an attorney because of concerns about the cost.  However, our law firm and some others offer a free consultation to beneficiaries involved in claims disputes.  If you decide to retain our law firm to challenge your insurance company, we will usually represent beneficiaries on a contingency fee basis, so our attorney fees come out of any financial recovery.  The decision to retain a Florida Insurance Claims Lawyer from the beginning of your insurance claims dispute will mean that you have a knowledgeable and experienced advocate to help you strengthen your factual and legal position, balance the playing field against the insurer’s attorneys, and guide your through pitfalls that can result in the loss of certain rights.
  • Pay Attention to Unexplained Delays: Beneficiaries should continue to follow up on a pending claim.  If the insurance company fails to handle your claim in a timely fashion or engage in delays without a reasonable justification, this might constitute a basis for an insurance bad faith lawsuit even if the insurer eventually pays your claim.

If you have questions about life insurance claims, you are invited to contact our law firm to speak to an experienced Florida life insurance claims attorney.  My law firm represents policyholders in claims disputes in Miami and throughout Florida. The Law Firm of J.P. Gonzalez-Sirgo, P.A. offers free consultations and case evaluations. No Recovery, No Lawyer Fees. Call 305-461-1095 or Toll Free 1-866-71-CLAIM. 

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