What to Do If MEMBERS Life Insurance Company Denied Your Life Insurance Claim

A denial from MEMBERS Life Insurance Company can be unexpected and distressing. Life insurance benefits are often intended to provide financial stability and peace of mind after the loss of a loved one. When those benefits are denied, it can leave families feeling uncertain about how to proceed. However, it’s important to know that many claims can be successfully appealed. If your claim has been denied, call the Law Offices of Jason Turchin at 800-337-7755 or chat with us live. We’re here to help you navigate the process, understand the reasons behind the denial, and work toward recovering the benefits you’re owed.

Common Reasons MEMBERS Life Denies Claims

Understanding why MEMBERS Life Insurance Company denied your claim is the first step toward building a strong appeal. Common reasons include:

• Policy Lapse Due to Nonpayment:
  A frequent reason for denial is that the policy lapsed because premiums weren’t paid. In such cases, MEMBERS Life may claim that the coverage was no longer in effect at the time of death. Providing proof of payment, evidence of financial hardship, or documentation showing that the policyholder intended to keep the policy active can help strengthen your appeal.
• Issues During the Contestability Period:
  Most life insurance policies include a contestability period—typically the first two years—when claims are carefully reviewed. If MEMBERS Life identifies inaccuracies in the application, such as omitted medical conditions or errors in personal information, they may deny the claim. Submitting corrected information, additional medical records, and clear explanations can help address these issues and improve the chances of a successful appeal.
• Policy Exclusions or Limitations:
  Some policies include exclusions that prevent payouts under specific circumstances. For example, deaths resulting from certain high-risk activities or pre-existing conditions may be excluded. Reviewing the policy terms carefully can help determine if the exclusion was applied correctly. If not, you may have grounds to challenge the denial.
• Beneficiary Disputes or Changes:
  If there are questions about who should receive the death benefit—such as multiple claimants or recent changes to the beneficiary designation—MEMBERS Life may withhold payment until the matter is resolved. Legal assistance can help clarify beneficiary rights and ensure that benefits are distributed according to the policyholder’s wishes.
• Missing or Incomplete Documentation:
  Claims may be denied if critical documents—like a certified death certificate, completed claim forms, or proof of beneficiary status—are missing or incomplete. Ensuring that all paperwork is accurate and fully submitted can help prevent or resolve this type of denial.

Steps to Take After Receiving a Denial

If MEMBERS Life Insurance Company denies your claim, consider these steps to strengthen your appeal and improve your chances of a favorable outcome:

1. Review the Denial Letter Thoroughly:
   Carefully read the denial letter to understand the reasons for rejection and the appeal process. Understanding MEMBERS Life’s rationale will help guide your response.
2. Gather Supporting Documentation:
   Collect all relevant records, including:
   • A copy of the life insurance policy and any riders or amendments
   • Proof of premium payments
   • Medical and hospital records addressing any disputed health conditions
   • Certified death certificates
   • Correspondence with MEMBERS Life Insurance Company
   • Documentation confirming your beneficiary status
   A well-prepared set of documents can significantly strengthen your case.
3. Submit a Formal Appeal:
   Follow the appeal instructions provided by MEMBERS Life. Clearly explain why the denial was incorrect, supported by the evidence you’ve gathered. A detailed, thorough appeal increases the likelihood of a favorable outcome.
4. Consult a Life Insurance Attorney if Needed:
   If your initial appeal is denied or if the process feels overwhelming, consulting a life insurance attorney can provide invaluable support. An experienced attorney can:
   • Identify errors in MEMBERS Life’s reasoning
   • Help you gather additional evidence
   • Represent you in negotiations or legal proceedings, if necessary
5. Consider Filing a Complaint With State Regulators:
   If your appeal fails, filing a complaint with your state’s insurance department may prompt further investigation. While this step doesn’t guarantee approval, it can lead to additional scrutiny and potentially a resolution.

Example: Appealing a Denial Due to Application Errors

Hypothetical: A policyholder applied for life insurance and disclosed a pre-existing condition. After the policyholder’s passing, MEMBERS Life denied the claim, citing incomplete medical information. The beneficiary provided additional medical records, including documentation that the disclosed condition was the only significant health issue at the time of application. By submitting these records and correcting any misinterpretations, the beneficiary can successfully overturn the denial and receive the full death benefit.

Interpleader Lawsuits and Life Insurance

Sometimes, claim denials occur because of disputes over the rightful beneficiary. In these cases, an interpleader lawsuit may arise. MEMBERS Life might deposit the policy’s proceeds with a court and ask the court to determine who should receive them. Common reasons for interpleaders include:

• Conflicting beneficiary designations
• Questions over the validity of a beneficiary change
• Multiple claimants asserting rights to the benefits

What to Do in an Interpleader Situation:
If you’re involved in an interpleader, it’s important to act promptly. Gather all documentation supporting your claim, such as original beneficiary designations and evidence of the policyholder’s intent. Consulting a life insurance attorney can help ensure that your rights are protected and that you present a strong case to the court.

Florida Claims Against MEMBERS Life Insurance Company

Florida residents may face unique challenges when appealing a denial from MEMBERS Life. Understanding Florida’s insurance laws and consumer protections can be crucial to building a strong case. Working with a Florida-based attorney familiar with these regulations can sometimes help improve your chances of recovering the benefits you’re entitled to.

How the Law Offices of Jason Turchin Can Help

If MEMBERS Life Insurance Company denied your life insurance claim, you don’t have to handle the appeal on your own. The Law Offices of Jason Turchin has extensive experience helping clients challenge life insurance denials. Our team will carefully review your case, identify errors in the denial, and guide you through the appeals process. Call us at 800-337-7755 or start a live chat today to learn more about how we can assist you.