Life insurance claims denials can happen under different circumstances. There are times when these denials are valid, but in some cases, they are acts of bad faith. Many of the most frequent claims for bad faith happen under various scenarios. When a death happens within the period of contestability, which is usually within two years of getting the policy, insurance companies can deny claims.

 

You should note that anything that is in the policy will be under scrutiny. If you want to file for claims where the deceased passed away with the first two years of the policy, you should consult a life insurance attorney.

 

Alleged material misrepresentations can lead to denial of an insurance claim by a life insurance company. Any errors and mistakes in the initial applications for coverage can leave you vulnerable to the eventual denial of the insurance claims. If during your application and insurance agents leads you to complete the application erroneously by design or accident, you can recover the benefits that are owed to you. Read http://money.cnn.com/retirement/guide/insurance_life.moneymag/index.htm for a retirement guide.

 

If a death happens during the period of application, it is likely that an insurance company will scrutinize every detail of the policy in an attempt to deny claims. One of the reasons for this kind of denial is claim of material misstatements on applications or the non-payment of initial premiums. There are cases where there is denial of accidental death benefits. In such a situation, the company pays the policy's face value, but denies the extra benefits.

 

In some situations, claims can be denied when there is a lapse in the payment of premiums. However, in such a situation, you should consider whether the notice of the lapse was sent to you in a manner that is timely and to the right address. In addition, if you had sent  a payment, be sure to find out whether there was a problem with he processing. In addition, check to see if the agent to whom the payment was sent did not forward it to the company. Check to see whether the company has a pattern of accepting payments late, and whether there is any grace period.

 

Life insurance claims denial in bad faith can also be due to some unscrupulous life insurance companies trying to settle incontestable policies for lower amounts, and this they do by claiming possible irregularities in applications, while taking advantage of the confusion and grief of beneficiaries. If you have experienced any of these, you should work closely with life insurance attorney to see that you start legal processes that will help you obtain the funds that are legally yours.