Has Your Claim Been Denied Because of a Lapse?

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Life Insurance Lapse Lawyer

Hear What a Life Insurance Lapse Attorney Has to Say About Lapsed Life Insurance Policy

If your life insurance claim has been denied due to an alleged life insurance policy lapse, don’t lose hope. Life insurance companies often wrongfully claim that they didn’t receive a premium payment, fail to follow the proper policy cancellation procedures, and more, resulting in unjust policy cancellations. The complex and ever-evolving laws surrounding lapses due to non-payment can work in your favor, but navigating this legal landscape is challenging without the guidance of a life insurance lapse lawyer.

Life insurance companies have a legal obligation to keep their contracts and practices current with the latest laws and regulations. However, some insurers fail to update their policies, neglect to properly inform policyholders of imminent lapses, or send crucial premium-due notices to outdated addresses. These missteps can serve as powerful evidence during the appeal process, potentially holding the insurer liable for your claim.

To uncover these errors and build a strong case (and overturn your denied policy benefits), it’s essential to work with a life insurance attorney who frequents with such matters. Their expertise can significantly increase your chances of recovering the benefits you deserve compared to going it alone. Our life insurance lawyers can scrutinize the insurer’s actions, identify any lapses in their legal duties, and develop a compelling argument on your behalf.

It’s important to recognize the gravity of missing a life insurance premium payment. Beyond the risk of policy cancellation, the consequences can be compounded if the insurer fails to send a timely, proper cancellation notice.

This oversight can leave policyholders and beneficiaries unaware of the lapse for an extended period.

What is a Life Insurance Lapse Attorney?

If you’re a beneficiary facing a denied claim due to a policy lapse, you may still be entitled to your benefits. The key is demonstrating that the insurance company failed to adhere to the strict legal requirements for sending cancellation notices. A life insurance lapse attorney can investigate the insurer’s actions, gather evidence of their negligence, and fight for your right to the policy’s proceeds.

Our life insurance lapse attorneys have a proven track record of success in handling lapse cases and possess a deep understanding of the relevant laws, regulations and tactics life insurance companies use to avoid paying claims.

During the appeal process, our attorney will guide you through gathering the appropriate documentation, such as premium payment records, correspondence with the insurer, and evidence of the insured’s intent to maintain coverage. Our lawyers will craft a persuasive appeal letter, highlighting the insurer’s missteps and the legal basis for overturning the denial.

If the internal appeal is unsuccessful, our attorney can explore additional avenues for recovery, such as filing a complaint with the state insurance department or initiating further legal action. Throughout the process, we will provide sound advice, support, and legal representation to give you the best possible chance of securing the life insurance benefits your loved one intended for you.

Don’t lose hope if your life insurance claim was denied due to a policy lapse. Act quickly, as the appeal window is limited. Our law firm offers a free case consultation to answer your questions and develop a strategy to recover your deserved benefits. We work on a contingent fee basis, meaning you don’t pay if we can’t recover your denied benefits.

During the consultation, we’ll review your case, explain your legal options, and examine any denial letters to understand the insurer’s reasoning. This is crucial for building a strong appeal.

Contact the DiGeorge Life Insurance Law firm today to schedule your free consultation and take the first step toward securing the financial protection your loved one intended.

What is a Life Insurance Lapse?

A life insurance lapse occurs when a policy is no longer active due to missed premium payments and exhausted cash value. This lapse in coverage means that the policy will not provide any death benefit or insurance protection for the insured.

The DiGeorge Life Insurance Law Firm specializes in addressing these lapses. With a deep understanding of the complexities involved, the firm commits to helping clients navigate the challenging aftermath of a lapsed policy. By focusing on reinstatement possibilities and disputing unjust denials, DiGeorge stands as a dedicated advocate for policyholders and their beneficiaries, ensuring that every client receives thorough and precise legal support.

Can You Recover Benefits From a Lapsed Life Insurance Policy?

The short answer is yes, there are several situations where you may be able to recover benefits from a lapsed life insurance policy, such as if the insured person passes away during the grace period (typically 30-31 days), if the lapse occurred due to an error made by the insurance company, if the policy allows for reinstatement within a certain time frame and the insured person passes away within that period, if the policy has an automatic premium loan provision that was not properly applied, or if the insurance company did not follow proper procedures for lapsing the policy.

What You Need to Know

If your life insurance claim has been denied due to a policy lapse, don’t give up hope. You may still have options to recover your benefits. Some insurance companies may wrongfully claim a policy lapse to avoid paying benefits.

This is where a life insurance lawyer can help.

We can identify improper lapse procedures, uncover bad faith practices, and build a strong case to protect your rights and ultimately help you recover your denied life insurance policy benefits.

The Grace Period Must Expire

In life insurance policies, the grace period is a designated time frame allowing policyholders to make overdue premium payments without losing coverage. This period is crucial as it provides a safeguard against immediate policy cancellation due to short-term financial obstacles.

Typically, the grace period extends for 30 days from the due date of the missed payment, although this can vary depending on the policy terms. If the policyholder fails to pay within this time, the life insurance policy will officially lapse. Once lapsed, life insurers discontinue all coverage, and the policy ceases to offer any death benefits or other associated protections.

The Law and Legal Guidelines Life Insurance Companies Must Follow for Lapsed Policies

Life insurance lapse laws and the specific statutes insurers must follow vary by state. However, most states have regulations in place to protect policyholders and ensure fair practices. Here are some examples of common state laws and statutes related to life insurance lapses:

  • Grace Period: Most states require a minimum 31-day grace period for life insurance policies, during which the policy remains in force even if a premium payment is missed. For example, in California, Insurance Code Section 10113.71 mandates a 60-day grace period for policies in force for longer than one year.
  • Notice of Lapse: Insurers must send written notice to policyholders before a policy lapses, informing them of the amount due, due date, and consequences of non-payment. In Florida, Statute 627.4555 requires insurers to give a 21-day notice before the expiration of the grace period.
  • Reinstatement: Many states have laws obligating insurers to allow policyholders to reinstate lapsed policies within a certain time frame. In Texas, Insurance Code Chapter 1105 gives policyholders the right to reinstate a lapsed policy within three years, subject to certain conditions.
  • Unfair Practices: State laws also prohibit insurers from engaging in unfair or deceptive practices related to policy lapses. For instance, New York Insurance Law Section 2601 prohibits insurers from misrepresenting policy provisions or engaging in unfair claim settlement practices.
  • Incontestability: Most states have incontestability laws that limit an insurer’s ability to deny coverage based on misstatements in the policy application after a certain period, typically one or two years. These laws can come into play when an insurer attempts to rescind a policy due to an alleged lapse.

Our life insurance law attorneys can help determine if an insurer has violated any applicable regulations and insurance laws, further building your case to recover your denied benefits.

How Can Life Insurance Lapse Lawyer Help Recover My Payout?

If your life insurance claim has been denied due to an alleged policy lapse, a skilled life insurance lapse lawyer can be your strongest ally in fighting for the benefits you deserve. At DiGeorge Life Insurance Law Firm, we have decades of experience overturning denied life insurance benefits based on the premise of lapsed life insurance policies. We know how to hold life insurers accountable when they fail to follow laws surrounding life insurance lapses and cancellations.

Our team has in-depth knowledge of state-specific lapse laws, thoroughly investigates cases, and provides strong advocacy to protect our clients’ rights and you, the beneficiary, paid. If your life insurance claim has been denied due to a lapse, contact us to schedule a free consultation, so that we can help recover the benefits owed to you.

Common Causes of Policy Lapse

Life insurance policies typically lapse due to missed premium payments. Several factors contribute to this scenario, including financial hardship, oversight, or misunderstanding of policy terms. Additionally, changes in personal circumstances, such as employment loss, injury or poor health of the payee, a debilitating accident, or significant life events, can divert attention and financial resources away from maintaining life insurance premiums.

The impact of a lapse is immediate and significant. Policyholders lose their insurance coverage, which means that in the event of the insured’s death, beneficiaries will not receive the expected death benefits.

Common Life Insurance Policy Lapses

Term Life Insurance

Term life insurance provides coverage for a predetermined period, offering a death benefit if the insured passes away within that term. If premium payments are not maintained, the policy lapses, resulting in the termination of coverage. There is typically no cash value attached to term life insurance, which means there are no funds within the policy to cover the premiums in the event of missed payments, unlike permanent life insurance.

Upon lapse, all protection ceases, and the policyholder forfeits any future claims to the death benefit, leaving beneficiaries without the financial safety net originally intended.

Permanent Life Insurance

Permanent life insurance differs from term insurance by offering lifelong coverage along with an added feature: cash value. This cash value accumulates over time as part of the premiums paid and can be used in several ways, including as a loan or to cover policy premiums if the premiums cannot be paid.

When a policyholder misses a payment for permanent life insurance, the insurer may use the accumulated cash value of the policy to cover the premium, thus preventing an immediate lapse. However, if the cash value of the policy is insufficient to cover the missed payments, the policy will lapse, leading to a cessation of coverage. This can have significant implications, as the policyholder loses both the insurance protection and the cash value that might have accumulated over many years.

How Much Does It Cost to Hire A Life Insurance Attorney?

At DiGeorge Life Insurance Law Firm, we understand that facing a denied life insurance claim due to an alleged policy lapse can be emotionally and financially devastating. That’s why we strive to make our legal services accessible and affordable to those who need them most, making it free to get started, working on a contingent fee basis meaning you don’t pay us unless we recover the benefits rightfully owed to you.

As a firm specializing in life insurance disputes, particularly those involving lapses, our attorneys bring a unique combination of legal expertise and industry knowledge to every case. This allows us to explore all legal avenues to protect our clients’ rights and secure the benefits they deserve.

Get Started With a Free Life Insurance Lapse Lawyer Consultation

We believe in providing proactive client care, which starts with a free case consultation. During this consultation, we will review your case, answer your questions, and provide an honest assessment of your legal options.
Our firm operates on a contingency fee basis, which means you won’t owe any attorney’s fees unless we successfully recover benefits for you. Schedule a free life insurance lapse consultation here.

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Find Answers to Frequently Asked Questions

How Much Does it Cost to Hire a Life Insurance Lawyer

At DiGeorge Life Insurance Law Firm, we understand the financial and emotional strain of a denied life insurance claim. That’s why we offer our legal services on a contingency fee basis, meaning you won’t pay any legal fees unless we successfully recover a settlement for you.

There are no upfront costs to start your case, and you will never receive a bill from us. If we don’t win your case, you don’t owe us anything.

To get started, simply fill out our secure online form for a complimentary case review with a life insurance lawyer, or call our office at (800) 391-9692 to schedule your free consultation.

Can a Life Insurance Claim Be Denied Legally Due to a Policy Lapse?

Yes, if a life insurance policy has lapsed due to non-payment of premiums, the insurance company can deny a claim for the death benefit.

How Long After a Policy Lapse Can a Claim Be Denied?

Most life insurance policies have a grace period, typically 30-31 days, during which the policyholder can pay the overdue premium without losing coverage. If the insured person dies during the grace period, the claim will still be paid, minus the overdue premium. However, if the insured dies after the grace period and the policy has lapsed, the claim can be denied.

Can a Lapsed Policy Still Pay Out If the Insured Dies Within the Reinstatement Period?

If the insured person dies within the reinstatement period (usually 2-5 years after the lapse) and the policy has not been reinstated, the claim will typically be denied. Reinstatement must be completed before the insured’s death for the policy to be valid and pay out the death benefit.

The DiGeorge Life Insurance Law Firm Advantage

DiGeorge Life Insurance Law Firm excels in representing clients whose life insurance claims have been denied due to policy lapses. Our attorneys possess a deep understanding of the complexities involved in these cases and are committed to conducting thorough investigations and advocating fiercely on behalf of our clients.

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No Recovery, No Fee

Our contingent fee structure means we are as invested in your success as you are; we only succeed when you do.

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National Recognition

Known across the country for our success in life insurance recovery, our reputation speaks for itself.

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Millions Recovered

Our team has recovered millions of dollars for our clients after receiving life insurance benefits denied or delayed.

Has Your Life Insurance Claim Been Denied Due to a Policy Lapse?

Our life insurance lawyers help you receive the life insurance benefits owed to you, despite what the insurance company may say.

There is never any risk or out-of-pocket cost to you.