Life Insurance Beneficiary Designations Provisions

Recently, a New Jersey court heard a life insurance case arising out of a beneficiary dispute.

In Fox v. Lincoln Financial Group, et al.,[1] the insured bought a life insurance policy when he was married and designated his then wife as the primary beneficiary. The insured later divorced and changed the beneficiary by making his sister the primary recipient of the proceeds. Several years later, he married his second wife.

He did not, however, change the beneficiary designation on his life insurance policy.

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The Complete Plan to Appeal and Win a Denied Life Insurance Claim

People obtain life insurance policies as part of financial planning for their loved ones’ future.

Life insurance protects those who rely on the insured’s ongoing financial support and will suffer in the event that this support is withdrawn. Ideally, the life insurance company will pay the full policy amount after the insured’s death.

Unfortunately, this does not always happen. Life insurance claims get routinely denied by large insurance companies for various reasons. Here’s what you need to know regarding the process to appeal and win a denied life insurance claim.

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10+ Reasons for Life Insurance Claim Denials or Delays

The primary purpose of life insurance is to protect family members financially after their loved one’s death. However, a life insurance policy is not offering guaranteed protection. Even if they are valid, legally binding contracts, they are usually filled with loopholes that insurance companies can leverage to not pay out the benefits.

Generally, the insured policy owner pays premiums to the insurance company in return for its promise to pay a certain amount of money to the beneficiary after his death. When the insured person dies, the beneficiary files a claim with the insurance company.

If your life insurance company won’t pay, we can help. After years of practice, we recovered millions of dollars in denied insurance claims.

reasons life insurance won't pay out
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Life Insurance Through Work

Life insurance is an important asset in protecting your family’s financial future in case of death.

Many people obtain life insurance coverage through work because such policies are often inexpensive or free and do not require a medical exam. Employer-sponsored life insurance is also convenient, because the insured individual does not have to worry about remembering to make premium payments as they are automatically deducted from the employee’s paycheck.

The amount of life insurance obtained through work depends on the insured person’s salary. Every policy is different and in order to understand your rights as a beneficiary, you need to request a copy of the policy from the employer or the insurance company.

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Woman Staged Her Ex-Husband’s Death to Get $2 Million of Life Insurance

A Minnesota woman was charged with defrauding Mutual of Omaha Insurance Company of more than $2 million in life insurance by making a fake claim about her husband’s death.

According to the criminal complaint, the insured bought a life insurance policy on his life from Mutual of Omaha and listed his wife and son as the beneficiaries. 18 months after the policy became effective, the insured was reported dead in Moldova.

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Same-sex Partner of Insured Filed Bad Faith Lawsuit Against Cigna

The same-sex partner of a deceased employee of Edinboro University in Pennsylvania filed a lawsuit against Cigna for wrongfully denying his life insurance claim.

He claims that Cigna denied his claim because it did not recognize him as the lawful husband and beneficiary of the decedent. According to the lawsuit, the couple resided in the same household as domestic partners from 1994 until the insured’s death in June 2012.

When the insured started working for Edinboro University in Pennsylvania, he applied for recognition of his same-sex partner as a qualified domestic partner for health care and other benefits. His application was granted and he received $50,000 coverage of life insurance from Prudential with a right to buy additional life insurance.

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