The process of collecting life insurance can be complicated and frustrating. When the beneficiary of a plan is struggling financially, the stress of not being able to collect life insurance is particularly taxing. After the plan beneficiary files a claim, the insurance company will conduct a brief investigation. If the insurer finds everything to be compliant with the terms of the life insurance plan, they will make the money available to the family. The length of the process can vary but commonly takes about 30 to 60 days after the family files a claim with the insurance company.

If you are in the process of filing a claim, or if you have already filed and are waiting on payment, an experienced attorney can evaluate your situation and help you understand what your specific timeline should look like. If you have been waiting for an extended period of time for the insurance company to release your loved one’s life insurance payment, contact a lawyer. A skilled lawyer can expedite the process and help you get the payment that you need to support yourself.

Hiring a lawyer is an effective way to expedite the process of collecting life insurance. A knowledgeable lawyer understands the tactics that insurance companies employ when they stall the payment that deserving beneficiaries are owed. Your attorney can also help you understand if your insurance company is avoiding you or if they are simply doing their due diligence.

A major roadblock for beneficiaries often occurs when a loved one dies within the contestability period. Almost all insurance companies adhere to a two year contestability period. The contestability period goes into effect immediately after someone takes out a life insurance plan. If the insured dies within two years of firming up their plan, the insurance company will investigate to ensure that the death wasn’t suspicious or that the insured did not misrepresent anything on the application. If your loved one died within the contestability period, contact a lawyer right away for help ensuring your compensation is not wrongfully denied.

If you are fighting for the compensation that you need after a loved one passes away unexpectedly, the last stressor you need is an added expense. Our lawyers only collect payment from you if we successfully recover the life insurance payment that your insurance company owes. If we are able to hold your insurance company accountable, we only take a percentage of the money we win. Likewise, if don’t win against your insurance company, you don’t owe us a dime. Our knowledgeable Dallas, TX team understands how discouraging facing an uncooperative insurance company can be, which is why we use all of the resources at our disposal to fight for you.

Many people choose to take out life insurance policies in order to plan and provide for their family in the event of a premature death. Life insurance is a security that provides peace of mind that families will have financial support after an unexpected passing. For many families, life insurance money is necessary to keep them afloat after a loved one deceases. Unfortunately, life insurance companies will sometimes deny and delay claims for a variety of reasons and technicalities, leaving families without the funds they need. These denials and delays harm families in a number of ways. Some issues these denials can cause include:

1. Financial strife: People with life insurance policies acquire them to provide for their families financially after they pass away. Many families rely on the income of a certain family member, and their passing can cripple families financially when they are not given the money they deserve from insurance companies. Families may lose their homes, go into bankruptcy, and endure a host of other financial struggles because of having their life insurance claims denied or delayed.
2. Painful battles with insurance companies: After a loved one dies, the last thing families need is to undergo painful and lengthy battles with their insurance companies to get their rightful insurance money. Painful details about their loved one, their past, and their death may come up in the midst of a family trying to grieve.
3. Violation of the plans and wishes of a recently lost loved one: Losing a loved one is difficult. Knowing that an insurance company is violating their plans for your family and wishes regarding your care worsens an already impossible situation. No one should have to endure the pain of knowing their loved one’s wishes will not be carried out over some technicality employed by an insurance company, especially paired with the financial difficulties that come with such denials of claims.

Most insurance companies will pay within 30 to 60 days of a claim. 

There is no time limit on life insurance death benefits, so you don’t have to worry about being too late to file a claim.

To file a claim, you can call the company or, in many cases, start the process online.

Settlement of claims is one of the most important things life insurance companies do. Most life insurance companies will make a payment within 7 days of receiving the necessary documentation. 

Yes, life insurance claims sometimes get denied for a variety of reasons. 

Some reasons for denials may be:

1. The death happened during the contestability period 
2. The type of death wasn’t covered in the policy
3. The employer failed to submit a waiver of premium
4. Policy premiums were not paid, leading to a lapse in payment
5. There is no beneficiary designation on file
6. The beneficiary was changed after a divorce
7. The beneficiary on the policy is a minor
8. The insured did not name a spouse as a beneficiary in a community-property state
9. The life insurance policy was included in a will or a trust
10. The beneficiary was not updated after a major life change
11. The insured named his “children” or “relatives” as beneficiaries
12. The insured named only a primary beneficiary

Typically, life insurance proceeds received as a beneficiary due to the death of the insured person don’t need to be reported in gross income. However, any interest you receive is taxable and you should report it as interest received.

While the life insurance company may eventually reach out to beneficiaries, it’s much faster if you make a claim yourself.