Understanding Life Insurance Claims in Florida
Life insurance benefits may be the last thing on your mind after the death of someone close to you. Still, your loved one named you as a beneficiary because they cared about and wanted to protect you. Starting your claim quickly can help you avoid problems.
Even if you do everything by the book, a life insurance company could still delay or deny your claim. If that occurs, the next step is to hire a life insurance lawyer in Florida.
The team at Kennon Law has decades of combined legal experience that we can draw on to help you understand your rights as you file a claim or an appeal. But what can you expect from the claims process? Learn more about what insurance claims are and what to do if you run into problems with the insurance company.
What Is a Life Insurance Claim?
A life insurance claim is a formal request to an insurance company for payment after the insured’s death. The claim tells the insurer that the person has passed away and that it needs to pay death benefits to the beneficiaries.
Something that is becoming increasingly clear, however, is that life insurance companies are for-profit businesses that are always searching for any way to deny claims. This means that perfectly valid life insurance claims don’t always get paid out.
Life Insurance Policies and Beneficiaries
A life insurance policy is a contract between a policyholder and an insurance company. The insurer agrees to pay a sum of money to one or more beneficiaries when the policyholder dies. In exchange, the policyholder will make monthly payments or pay other types of premiums to the company.
There are two main types of life insurance policies: term and whole. Term life insurance lasts a set number of years. Typically, the policyholder can choose a term of 10, 20, or 30 years. Upon their death, the beneficiary can receive a set amount as long as the policyholder’s insurance was still active. The actual amount will depend on the policy.
Level term policies are the most common type of term life insurance. These policies pay the same amount of death benefit throughout the term’s length.
Some term life insurance policies are renewable. They allow the insured person to extend their coverage periodically. However, their premium may increase with every renewal.
The other main type of policy is whole life insurance. It’s usually more expensive, but it remains in place for the entirety of the policyholder’s life as long as they keep paying the premium.
Some policies are even convertible; that is, the policyholder can switch from a term life insurance policy to a permanent whole life policy when the initial term expires.
For all types of life insurance, the policyholder can designate anyone they choose to be a beneficiary. They may also name multiple primary and secondary beneficiaries.
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Filing a Life Insurance Claim
To begin the process of filing a life insurance claim, you will need to contact the company managing the policy first. If your loved one handled the policy through a specific insurance agent, consider calling that person directly. The agent or another representative will clearly explain what documentation and information you will need to provide in order to receive your benefits.
Vitally, you must obtain certified copies of the death certificate. You can get these from the funeral director or the medical professional who prepared the document. You’ll then have to fill out a claim form provided by the insurance company.
This form may ask you for the life insurance policy number, the deceased’s Social Security number, the cause of the death, and your personal information. You may also need to state how you would like to receive the benefits.
The Claims Process
Once you have submitted the form, you will have to wait for a decision from the life insurance company. Stay in contact with the representative you spoke with and carefully monitor the claim’s status. If the company needs more information or additional paperwork, provide it as quickly as you can.
In Florida, you will have five years from the date of your loved one’s death to collect the death benefits. Although this may seem like a lot of time, delaying could raise a red flag and could make a denial more likely. That’s one of the reasons you should file as soon as possible after a death.
If everything goes well, you can receive the benefits in a relatively timely manner. That’s not always what happens, however. The insurance company may delay the decision or refuse to communicate with you. You may even receive an outright denial. If that occurs, the most important step you can take is to contact a life insurance lawyer in Florida.
Valid Life Insurance Claims
Valid claims in life insurance are those in which the policyholder has fulfilled their side of the contract they made with the insurance company. They should not have missed any premium payments, and there should be no evidence of fraud or any other issues.
Sometimes, the policyholder may nullify their claim with their own actions. Many policies don’t cover death by suicide, for example, or some other causes of death, such as deaths caused by high-risk activities. Another reason for denial is nondisclosure, which happens when policyholders falsely state that they don’t have underlying medical conditions.
If the insurer cites one of these issues in a claim denial, consider speaking to a life insurance lawyer at Kennon Law.
Life Insurance Claim Payout Options
If the claim is approved, you can receive one lump-sum payment. This is the default option. Depending on the company and the actual policy, you can also receive payment in installments or in an annuity. With an annuity, the proceeds and accumulated interest are paid out regularly throughout the beneficiary’s life.
Although most life insurance payments aren’t taxable, the interest that accrues if you receive payment in the form of an annuity can increase your tax liability. In instances when the death benefits are significant, a lump-sum payment could help you manage your tax burden.
Dealing With Claim Denials and Appeals
Receiving a denial can be stressful, but don’t despair: There are legal options available. The first is to file an appeal.
To file an appeal, you must have a clear idea of what the reason for the denial is. The insurance company should offer this reason in writing. If it doesn’t, ask for it. In the letter you receive, the company should also offer instructions on how to begin the appeal.
The next thing you should do is hire a lawyer for life insurance claims. With legal representation, you have a better chance of meeting all of the necessary requirements for the appeal.
As you prepare for the appeal, gather all documents you have related to the claim and the policyholder. You may need certified copies of the death certificate, as well as medical records, the autopsy report, and insurance payment receipts.
You will need to submit the appeal within a set time frame. Your lawyer can clarify the filing deadline and ensure you meet it. The assessment of the appeal might take about a month. If the insurance company delays, ask your lawyer to follow up.
In certain cases, appealing might not be the right option. Your lawyer may recommend filing a lawsuit. A successful lawsuit can help you receive the death benefits and could also allow you to claim damages. Your lawyer might also negotiate for a fair settlement before going to court.
Getting Help With a Life Insurance Claim
If you have received a denial of a life insurance claim, you need to act fast. You can file an appeal to receive the benefits you’re owed. If the case is highly complex or the insurer is acting in bad faith, a lawyer can help you take legal action against the insurance company.
At Kennon Law, we offer the legal assistance you need for your life insurance claim. If your claim is denied, we will review the policy and investigate the reason for the denial. Then, we’ll discuss the best course of action and create a legal strategy.
Your loved one worked hard to secure your future, and you deserve the life insurance benefits you are entitled to. Contact our team of Florida life insurance claim lawyers for help.
FAQ
Learn more about the process of filing a life insurance claim or appeal.
What Is the Time Limit for Death Claims in Life Insurance?
Florida Statute Section 717.107(1) states that you only have five years in which to collect the benefits from a life insurance policy.
How Long Does It Take to Get a Life Insurance Settlement?
An insurer may take between 14 and 60 days to provide the life insurance settlement. If the company requires more information, the process can take longer. Of course, if your claim is denied, you can expect a much lengthier wait because you’ll have to go through the appeals procedure.
How Long Do You Have to Claim Life Insurance After a Death?
You have up to five years to claim life insurance in Florida after a loved one’s death.
How Does a Life Insurance Claim Work?
After the death of a loved one, the beneficiary can file a claim to receive life insurance benefits. This requires providing the insurer with a certified copy of the death certificate as well as information about the claim. The insurer will then assess the claim and make a decision within 60 days.
What Is a Contestability Period in Life Insurance and How Does It Affect My Claim?
In Florida, the majority of life insurance policies have a contestability period of two years. If the policyholder dies within the first two years after the policy begins, the insurer has a right to contest the claim. This can delay the benefit payments for the beneficiaries.
How Can I Prove the Cause of Death for My Life Insurance Claim?
You will need to have a copy of the death certificate. It could also be helpful to have the autopsy report, if an autopsy was conducted.
How Can an Attorney Help if My Life Insurance Claim Is Being Contested or Delayed?
An attorney can start gathering the necessary proof to dispute the reasons for the denial. Your attorney can also advise you whether to go beyond the appeals process and instead pursue a lawsuit. This may be a valid option if the insurer is acting in bad faith or if it refuses to cooperate.
What Is the Difference Between Term Life Insurance and Whole Life Insurance Claims?
Term life insurance lasts for a set period of time, typically between 10 and 30 years. If the insured person dies while their policy is active, then their beneficiaries receive the payout.
Whole life insurance, on the other hand, is permanent; it will be in place for as long as the policyholder lives, provided they pay their premiums.
What Are the Common Reasons Life Insurance Claims Are Denied?
Life insurance claims are denied for lots of reasons. If your loved one died in a manner that is not covered by the policy, then the denial could be valid.
For example, most policies don’t pay out when a death occurs as a result of a high-risk activity such as skydiving. Insurance companies can also deny death benefits if the policyholder commits suicide soon after taking out the policy.
Additionally, if the policyholder stopped paying premiums or otherwise violated the terms of the policy, the claim can be denied or contested. One common reason for a denial is that the policyholder was not truthful when they applied for the policy.
What Steps Should I Take if I’m the Beneficiary but the Life Insurance Company Refuses to Pay?
The first thing to do is to speak with an attorney. They can guide you through a life insurance appeal so that you have a stronger case for receiving the financial support your loved one intended for you to have.
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