What to Do When a Life Insurance Claim Is Stalled

A stalled life insurance claim can create unnecessary financial stress and uncertainty at an already difficult time. While insurance companies are required to pay valid claims in a timely manner, delays can occur for a variety of reasons. Understanding what might be causing the holdup and knowing how to address it can help you move forward and secure the benefits you’re entitled to. In this blog, we’ll explore the common causes of stalled claims, the steps you can take to resolve them, and when to consider legal assistance to get the process back on track.

Common Reasons for Stalled Claims

Life insurance claims may stall for several reasons, including:

1. Incomplete Documentation

One of the most frequent causes of delays is missing or incomplete paperwork. Insurance companies require specific documents—such as the policy number, death certificate, and a completed claim form—to process a claim. If any of these items are missing or inaccurate, the claim may be put on hold until the necessary information is provided.

2. Contestability Period Reviews

When a policyholder passes away within the contestability period (typically the first two years after the policy is issued), the insurance company may take extra time to review the claim. During this period, the insurer can investigate the policyholder’s application for any misstatements or omissions. This can slow down the claims process, even if the claim is ultimately valid.

3. Beneficiary Disputes

If there are conflicting claims from multiple beneficiaries or disputes over the validity of a beneficiary designation, the insurance company may pause the payout until the dispute is resolved. These situations often require legal intervention or court rulings, which can extend the time it takes to receive the benefits.

4. Internal Processing Delays

Sometimes the delay is simply due to administrative backlogs or internal processing issues within the insurance company. While these delays are not the fault of the beneficiary, they can still cause significant frustration and financial strain.

Steps to Get a Stalled Claim Moving

If your claim has been delayed, there are several actions you can take to help resolve the issue:

1. Confirm That All Required Documents Are Submitted

Double-check that you’ve provided all the necessary documentation. Make sure the death certificate is certified, the claim form is fully completed, and any additional supporting materials (such as proof of identity or the original policy) are included. Submitting all documents at once, in a clear and organized manner, can prevent further back-and-forth with the insurer.

2. Follow Up With the Insurance Company

Sometimes all it takes is a phone call or email to get things moving. Contact the insurer’s claims department and ask for an update on the status of your claim. Be polite but persistent. Keep a record of all correspondence, including names, dates, and any information provided. This documentation can be valuable if the delay continues.

3. Ask for a Written Explanation

If the claim remains stalled, request a written explanation from the insurer. This should outline the specific reasons for the delay and provide details on what needs to be resolved before the claim can be paid. Having this information in writing can help you address the insurer’s concerns more effectively.

4. Consider Filing a Complaint

If the delay is unreasonable, you may file a complaint with your state’s department of insurance. In Florida, for example, the Department of Financial Services investigates complaints and ensures that insurers comply with state regulations. Filing a complaint can sometimes prompt the insurer to expedite the claim to avoid regulatory scrutiny.

5. Consult a Life Insurance Attorney

If your efforts don’t yield results, it’s time to seek legal assistance. An experienced life insurance attorney can review the details of your case, identify any legal violations or bad faith practices by the insurer, and help you take appropriate action. In some cases, just having an attorney involved can prompt the insurer to resolve the claim more quickly.

What to Do If the Claim Is Denied

In some cases, a stalled claim may eventually result in a denial. If this happens, don’t lose hope. Denied claims can often be challenged through the insurer’s appeals process or, if necessary, through litigation. An attorney can help you gather additional evidence, present a compelling appeal, and, if needed, file a lawsuit to pursue the benefits you’re entitled to.

Get Help With Your Life Insurance Claim

When a life insurance claim is stalled, taking the right steps can make all the difference. By ensuring that all documentation is in order, following up consistently, and seeking legal guidance when necessary, you can overcome delays and secure the benefits you deserve. If your claim is stalled, contact the Law Offices of Jason Turchin today for a free consultation. Our experienced team can help you navigate the claims process, address insurer delays, and fight for your rights as a beneficiary.