How Long Can an Insurance Company Review a Life Claim?
Usually, an insurance company can review a life insurance claim for a reasonable amount of time. In the majority of cases, the insurer has 30-60 days to conclude the claim review after it has received all the supporting documents. Since in some cases, the insurance company will need to receive and examine the decedent’s medical records, the review may take longer than expected. Certainly, the insurance company may have legitimate reasons for delaying paying a VGLI claim. However, many VGLI claims are delayed for the wrong reasons. A VGLI lawyer can help you understand your rights under the law and guide you through the process of recovering delayed VGLI benefits.
Beneficiary Disputes in Life Insurance Cases
Another reason why a life insurance claim may be denied is a beneficiary dispute or beneficiary contest. Life insurance beneficiary disputes may delay a claim for a year unless you take action. The insurance company may approve a claim for payment, but it may not be sure who the rightful recipient is. This usually happens when several individuals file competing claims for the same life insurance benefits. An insurance company may not wish to pay to one individual and not the other in order to avoid being sued by the claimant whose payment was denied. In life insurance beneficiary disputes, an insurance company has two options – 1) allowing the disputing individuals to reach an amicable resolution, and 2) filing an interpleader in court.
Beneficiaries’ Rights to the Proceeds of a Life Insurance Policy in a Dispute
Your rights to the life insurance benefits depend on the law and the facts of your case. Agreeing to settle a beneficiary dispute may or may not be the best option depending on your particular circumstances. A life insurance lawyer will help you understand your legal rights to the proceeds of a life insurance policy and will handle all the negotiations and possible litigation on your behalf. In case the parties involved in a life insurance beneficiary dispute agree to resolve the disagreement, your life insurance lawyer will draft an agreement that all the parties will sign in order to protect your rights in the future. If you are not represented by counsel during a life insurance beneficiary dispute, you may risk losing some or all the benefits to which you are entitled under the law. Retaining a life insurance lawyer with experience in resolving beneficiary disputes may be the best decision on the path to recover your life insurance claim.
Role of Interpleader in Life insurance Beneficiary Disputes
If the life insurance beneficiaries and claimants involved in a dispute cannot or do not wish to reach a resolution by way of negotiations, the insurance company will file a lawsuit called interpleader. An interpleader is a court action filed by a neutral stakeholder – the life insurance company- against the competing claimants. The insurance company will eventually withdraw from the suit allowing the life insurance claimants to present their arguments in court.
If an interpleader is filed and you are one of the involved parties, retaining a life insurance lawyer is not just advisable – it may be necessary. A court action requires a litigant to adhere to strict court rules, deadlines, filing requirements, etc. In order to present a winning argument, you need a dedicated, experienced life insurance lawyer on your side.
A life insurance claim can be delayed for various reasons. In order to understand how to expedite payment on a claim, consult with an experienced life insurance lawyer. VGLI attorneys at our firm will protect your rights and will help you avoid denial of your VGLI claim. To speak with one of our life insurance lawyers call 888-510-2212.
Call (888) 510-2212 for a free consultation.