September is Life Insurance Awareness Month. Many life insurance companies and financial institutions use this as an opportunity to contact their insureds and other potential customers to promote their life insurance products. There is no doubt obtaining life insurance is an important step to take for your loved ones. The purpose of life insurance varies from one person to another and depends on your age and responsibilities.
The type and amount of insurance to purchase will depend on the standard of living you wish to provide to your dependents and the amount of assets and sources of income available to those who survive you when you pass as they generally provide financial security. You should of course consult with an agent or financial advisor to help you with your life insurance needs.
Most individuals believe that life insurance benefits are automatically paid to the beneficiary upon death. That is not always the case however. A claim for life insurance or accidental death and dismemberment (AD&D) can be denied on occasion. These reasons we often see for a denial include: improper enrollment in an insurance plan offered by an employer, improper beneficiary designations, misrepresentation of medical conditions on applications and disputes over whether a death was “accidental” (as in the case of AD&D coverage).
If you experience such a denial, you may want to contact our office for a review of your situation. There can be short deadlines that apply to filing a claim or acting on a denied claim, which means you should not hesitate to act when if this occurs.