Life Insurance Lawyer 101 – Everything You Needed To Know About Them

 It might be a fact that beneficiaries do not require a life insurance lawyer. It is quite a surprising fact, but the reality is a life insurance company relies on a favorable word of mouth. That is just good business! Paying up the benefits is the most sensible thing to do when it comes to life insurances which ensure the longevity of the plan and the company from generation to generation.

You will need a life insurance lawyer in case there are beneficiary disputes. These disputes are of various types and this article we have listed the cause, effect, and aid you can receive from a life insurance lawyer.

What is a life beneficiary dispute?

In life, we experience happiness as well as a lot of sadness, especially over the passing of a loved one. Sometimes we see that in spite of being named a beneficiary of a life insurance policy, the individual never completed the necessary paperwork. In some cases, there were unexpected clauses put in by the person or the unpleasant surprise of a second claimant.

The stages of the beneficiary dispute

In case there is a beneficiary dispute a plea for a life insurance interpleader is filed before any further action. After filing of the interpleader by the insurance company when there is more than one claim, the court gets to decide about the rightful beneficiary.

At the hearing, each claimant has to present their case to the court as to the rightfulness of the beneficiary claim. At times a negotiation can lead to arbitration or mediation where the proceeds get divided between the interested parties. If this is not acceptable the next step is a court case, the resolution of which can take months even years! That is not just time-consuming but also burns a hole through the pocket.

Why the life insurance lawyer?

In such complex cases especially where legal battles and proceedings are involved, you need the best professional help. An experienced life insurance lawyer will represent you and your interest in the arbitration or the court case. A life insurance attorney has training, and real-life experience with the legalities of the matter with respect to the different types of life insurance policies, the state, and the federal laws and to best prove your case. Investing in an attorney will help you save money and trouble all the while representing your best interests.

How does such a dispute arise?

There are a variety of reasons possible for a life insurance beneficiary dispute.

The original beneficiary might have been the children, but if the individual remarries and changes the beneficiary to the new wife. A dispute might arise when the insurer ignores a stipulation for coverage in the divorce decree. It is quite true that just the individual’s intent of leaving you money does not guarantee that you will benefit from the proceedings. There has to be adequate proof for the fact. Consulting a life insurance lawyer is crucial in such disputes and cases. For the best settlement and judging the merits of the case invest in professional help today.

When would you need a life insurance lawyer?

There are various common causes for a life insurance beneficiary dispute, as the same does not apply in every state or country. Some of the common ones relisted as the following,

  • A change in beneficiary
  • A change in beneficiary that was coerced or forged
  • An absence of listed beneficiary in the policy document
  • In cases of dispute between the former and current spouses
  • Children who are due to receive the life insurance proceeds as per court order but are not listed in the policy
  • More than one claimant of the proceeds
  • In the case of the association of the beneficiary with the cause of death directly/indirectly
  • The change in beneficiary was never executed properly and documented
  • The amounts designated for the various beneficiaries does not add up to the total value of the insurance policy
  • In case of suspected murder or the suicide of the insured individual
  • Changes to the life insurance policy stipulations at the death bed
  • If the beneficiary is predeceased and did not make further changes to the policy with respect to the fact
  • Stepchildren or adopted children who are not mentioned or indicated in any way in the policy

Life insurance lawyer is the way to go

Not just because of the associated legal hassles but because insurance attorneys are experts in what they do and understand the money laws involved, you should always go for a life insurance lawyer. That is often true when the contestant of your claim is a family member. It is always advisable to avoid family troubles over money. A lawyer will help in keeping things straight and civil. With the aid of a professional, you will be surely able to distance yourself from the trouble and a possibly sensitive issue. It is a great idea to always invest in a life insurance lawyer the moment you feel resistance while claiming a life insurance beneficiary proceeding.

You would do well to remember that the life insurance companies are out to make business and any successful venture model is all about the gains and cutting losses. If a company has the grounds to reject a claim they will do so at the drop of a hat. The firms sustain incredible amounts of profits by collecting the premiums and not through the payment of benefits.

With all due respects to the deceased, the individual might have been working behind the scenes to secure a better future for you after he/she is gone. You might even be in dire need of the financial assistance on offer. The life insurance company might act in bad faith and deny your claim. Do not be cheated and never allow this to happen to you. Act promptly and initiate a life insurance lawsuit with the help of a life insurance lawyer as soon as possible.