Life Insurance Claims - How to Collect and What Can Go Wrong

When an insured dies there is not a standard processan accidental death policy the cause of death will be
of submitting a life insurance claim to the insuranceextremely important to collecting your claim. Be
company and then receiving the death benefit. In ourprepared with documentation.
twenty-plus years of helping clients collect deathThe insurance company will do several things when
benefits no two life insurance claims have been thethey receive a life insurance claim. One of the first
same. An unfortunate reality is that insurancethings they will do is ask the beneficiary to meet with
companies look for reasons to deny death benefita claims underwriter for an interview. In this meeting
claims. While there are instances when a life insuranceyou will be asked about the insured's medical history,
claim should be denied because of fraud, most oftenwork history, personal life and cause of death. These
death benefit claims are denied for the wrongpeople are not there to help you; they are there to
reasons.uncover anything that may have been hidden from
We represented a client where the initial death claimtheir client - the insurer. Don't have the meeting alone.
was denied because the insured paid the premiumBring a trusted family member, friend or advisor. The
from savings while waiting for a consulting contractinsurer will do a medical investigation in which they will
bonus to pay. The insurer claimed he did not havereview autopsy reports, toxicology reports and
enough earned income for them to issue a policy andrecords from doctors the insured visited. This part of
were therefore not liable to pay the claim. In anotherthe investigation may go back a few years or
case we collected a death benefit claim for a clientseveral decades. One of our cases required records
where the claim was initially denied because therethat went back over twenty years. There will be a
was no named beneficiary. This even though shefinancial investigation which can include examining tax
lived with her disabled mother and had no husband orreturns, social security records and financial aid
children and the intent was obvious. We collected aapplications. We helped a client who had several
death benefit claim for a client where the initial claimLimited Partnership interests which the insurance
was denied because the autopsy report was misreadcompany valued at a fraction of the actual value. We
by the claim underwriter who accused the insured ofhad to collect independent appraisals in order to
being a drug abuser. We collected statements fromprove the deceased's net worth before we were
his doctor disputing this accusation and got the claimable to get the claim paid.
paid.If you are going to submit a death claim be as
These are just some examples of why you need toprepared as possible. Remember that insurance
prepare your life insurance death benefit claim beforecompanies are looking for reasons to deny claims.
you submit it. Read through the policy to determine ifDocument interviews and conversations in case you
there could be any restrictions or stipulations forneed to go back to the items discussed. If possible
receiving the death benefit. Check the date of thehave someone with you during meetings. If the
application. Is it the same as the policy issue date? Allinsurance company records conversations keep a
benefits start as of the date the policy was issued. Ifrecord of the time and date. If your claim is denied
the insured died within two years of the policy date,you must be notified, in writing, as to the reason
the insurance company will almost certainly challengewhy. From this information you can appeal the denial.
the death claim. All life insurance policies can beIt's always best to have representation and to be
challenged, or contested, by the insurer in the first 2prepared for the initial claim process so you can
years. Review the death certificate for the statedcollect the death benefit that the insured intended
cause of death. If you are submitting a claim underfor you to have.