Experienced personal injury attorney Jay Leffler explains why life insurance companies won’t pay up unless their clients hire a good lawyer
Jay Leffler has more than 25 years of experience helping injured individuals and families of deceased life insurance policyholders obtain due compensation in a timely manner. Leffler, who works for notable Pennsylvania law firm Zarwin Baum, handles cases ranging from slip and fall accidents and insurance claim denials to declaratory judgments and indemnification actions. Jay Leffler recently obtained life insurance compensation from an insurance agency that denied beneficiaries compensation over an argument over the policyholder’s cause of death.
Sadly, the above-mentioned excuse isn’t the only one used to avoid a payout. Some life insurance companies are willing to look for any excuse to avoid having to shell out compensation. As Jay Leffler notes, there are many reasons why life insurance companies refuse to pay up, especially if the beneficiaries don’t have good legal representation to help them resolve the case.
The Death Occurred During the “Contestability Period”
The “contestability period” is a one to two-year period after a life insurance purchase. During this time, the company carefully examines a policy holder’s records to ensure the information on the life insurance form is 100% accurate. If the policyholder dies during this time, the company may try to deny claims, even if a mistake on the policy has nothing to do with the cause of death.
Failure to Keep up with Payments
It’s not uncommon for elderly life insurance policyholders to forget to make payments. Ideally, one should set up automated payments to avoid this problem. Sadly, it’s hard to recover a policy once the payments have lapsed for two or more months.
Cause of Death Isn’t Covered
Not all causes of death are covered by a life insurance policy. Typical exclusions include hazardous sports, homicide, suicide, and death due to a natural disaster or terrorist attack. If the cause of death is disputable, a life insurance company will typically ask for more information and even conduct its own investigation before approving compensation. A good attorney such as Jay Leffler can speed the process up and ensure the insurance agency’s conclusions are fully accurate.
Sadly, there are cases in which two or more potential beneficiaries are filing for the same benefits. In such instances, life insurance companies take interpleader action, turning the compensation over to the court to determine who should receive the funds. Jay Leffler begins his work on these cases by working with a client to determine if the matter can be resolved by mediation; if not, then legal action is taken to secure benefits.
In these and other cases, having a good life insurance lawyer is a must. Attorneys such as Jay Leffler ensure that a life insurance company takes administrative appeals seriously, increasing the odds of resolving the case without going to court. If the case is taken to court, Jay Leffler will gather needed evidence, recruit expert witnesses, and help beneficiaries plead their case in front of a judge or jury.