Reasons for delayed life insurance claims and how to avert it
There are few to-do lists that we need to tick off the moment we have a stable career! Other than opening a savings account and making the necessary investments, it is also essential to opt-in for your life insurance. Selecting the correct policy is essential. Additionally, you also need to know the process of life insurance claims, so that you can claim it later.
According to the standard procedure, all life insurance claims are paid within a maximum of 30 days after submission of a formal claim to the concerned insurance organization. When the claim surpasses the 30-day time, the insurance company considers it as delayed. A delay of any kind will strain the survivors. Furthermore, a delay can happen due to multiple reasons.
Majority of the time, when insurance company denies claims and the reasons supporting the same are unfavorable! From missing important data to technical errors, the reasons are varied. To put some order and promise of receiving the claim, it is essential for people to reach out to expert life insurance lawyers. Delay in obtaining the insurance claim doesn’t necessarily mean that the claim will get denied altogether. But if you are facing a delay over a month or two, you need to look into the matter seriously.
Reasons for delayed life insurance claims
Addressing a delayed insurance claim is essential. Also, you need to know the possible reasons that cause a delay. Discussed below are some of the essential reasons that postpone your claims.
- The beneficiary could be a minor
Is the beneficiary a minor child? If yes, then the life insurance claims will get delayed till such time the insurance organization receives the necessary details about the minor’s guardians. It is important to add the minor’s guardian in the claim.
- Not naming a spouse
There are times when a spouse doesn’t get added as a beneficiary for a community-property state. In such cases, it is possible for the spouses to claim a certain amount of the proceeds from the insurance policy.
- Not updating the beneficiaries
Sometimes there can be significant life changes occurring in people’s lives! You might have a major setback as well, such as a divorce. There are instances, when people get married, have children, or change locations and many more. In such situations, the names of the beneficiaries get changed in their life insurance policies. When these changes aren’t updated, the claim will get delayed.
- Unnamed beneficiaries
When an insurance claim doesn’t carry the name of a beneficiary, the concerned insurance company will either pay the proceeds based on the state law rules. And this can delay the insurance claim as well.
How to avoid any life insurance claim delays?
One of the intelligent ways to avert all kinds of denials and delays in your life insurance claim is to consult a life insurance lawyer. This attorney will ensure that all the correct data gets added with the claim. Going forward, the lawyers will let the insurance companies know that they want a clear claims policy in place. The moment an insurance company is aware that you have a lawyer to guide you; they will stop delaying the claim because you didn’t add any unnecessary details.
Do you want to know how to stay away from claim delays? If yes, you can refer to the pointers listed below:
- Make sure that you are adding in precise data
Right from the start to the end, it is essential to add in only the correct data in your insurance claim. A missing or wrong data will lead to a delay.
- Make sure to have a beneficiary
It is essential to appoint a beneficiary and ensure that you name the correct beneficiaries. You must also make the necessary updates if there has been any significant life change.
- Make sure to pay all your premiums on time
It is a smart call not to let your policy lapse because of any non-payment issues. Ensure that you have made the necessary arrangements for another person to receive the relevant invoices so that the premiums are paid on time, even when you are not present.
- Add in all the essential documentation
Every insurance company has its process for a claim. The company will inform you about all the details that it requires before they start to pay the benefits. You need to ensure that all the details and correct get submitted in time.
The solution for the delay in life insurance claims
There are times when a delayed life insurance claim becomes a denied one. In such a situation, it’s pointless to follow up the life insurance company all by yourself. You need to know the correct legalities supporting this process. For this, it is essential that you get in touch with an ace life insurance lawyer who has the necessary expertise to address this issue and resolve it successfully, at the earliest.
Each lawyer has their way of working! There are expert life insurance lawyers who can make you receive a claim, from a claim that the insurance company denied before. Some ace lawyers proceed with the case at hand by meeting the claims representative of the life insurance company. The lawyer attempts to convince the representative to clear the payment in within two weeks. Just in case a claim gets denied, the lawyers will have to get down to serious work. They will have to submit a legal brief, that’s anything between 100 and 200 pages, to the company’s legal section directly. After this, both you and your lawyer will have to allow some time, preferably a month for the company to share their decision. Usually, this is the process that most lawyers follow. However, every case of a life insurance claim delay or denial has its challenges. Hence, the solution provided by the lawyers is case specific and subjective.
It is always a smart call to go ahead under the guidance of an expert lawyer! If you try to resolve this complex issue yourself, you might fall into more trouble. You can ask for recommendations from your friends and family for a life insurance lawyer. Close references prove useful most of the time. That aside, you can always research online and gather the names of the law firms and get connected.