5 Ways Bad Faith Insurers Opt to Deny Your Claim

Insurance

While investing in a life insurance policy, you may think about bad faith insurance and hesitate to invest. This is only natural. There are many people who are unfortunate enough to be served by bad faith insurance and either they didn’t get the claim or got it much later than when it was required the most. Companies who are compliant with the law do not take the risk of ruining their business as a bad faith insurance company, but there are many who try to stop your claim on any grounds despite showing every authentic document requested. This is when you need a bad faith insurance lawyer to stand against their conspiracy and bring you your deserving claim. But, before you hire one, learn the common ways in which you can be taken for a ride by bad faith insurers.

1. Generally, life insurance policies have a two-year incontestability clause. After these two years, the insurer can only cancel the policy if the investigation finds that there are misrepresentations on the application. But what bad faith insurers do is spend the time to investigate how to cancel the claim. In many cases, after the demise of the policyholder, when the nominee or beneficiary files the claim, either the insurance company delays unnecessarily or gives out much less than you are entitled to.

insured.jpg

2. Once the claim is processed, after providing all of the documents from the beneficiary, the bad faith insurance company starts their own investigation which is formed to cancel the claim. They may request many additional records such as a death certificate, payment receipts of policy premiums, medical history, etc. They are supposed to process the investigation and release the claim as soon as possible, but in reality, they elongate the process and harass the beneficiary. The beneficiary needs a bad faith insurance lawyer in this case.

Insurance claim

3. In fact, the policyholder who may have failed to submit the premium payment for the last few months due to severe illness may have had their policy canceled. Generally, it does not matter if the policyholder always paid the premium on time. The bad faith insurance companies make it an issue to put against the claim.

4. After the death of the policyholder, insurance companies misinterpret the policy terms in front of the beneficiary and if the person does not have the mental capacity to fight for it, they utilize it against them and cancel the claim. It is better to let a professional bad faith insurance lawyer deal with the case and bring the claim back to the beneficiary.

Policy terms.jpg

5. There are several things that do not come under the coverage of insurance claims. Generally, the bad faith insurance companies do not tell you about them. Later, it will come up that the claim is not under the coverage of the policy.

It is not possible to fight against fraudulent companies on your own. Hire a bad faith insurance lawyer from The West Law Firm and get the claim paid out without any hassle.