What to Do If Security Benefit Life Insurance Company Denied Your Life Insurance Claim

Facing a denied life insurance claim from Security Benefit Life Insurance Company can be frustrating and leave you with many unanswered questions. Life insurance benefits often serve as a safety net during difficult times, and when a claim is rejected, families are left wondering what went wrong. The good news is that many denied claims can be appealed successfully. If your claim was denied, call the Law Offices of Jason Turchin at 800-337-7755 or chat with us live. We can help explain the reason behind the denial and guide you through the steps to appeal it.

Common Reasons for Denial by Security Benefit Life Insurance Company

Understanding why a claim was denied is the first step toward building a strong appeal. Security Benefit Life Insurance Company may deny claims for several reasons, including:

• Policy Lapse Due to Nonpayment of Premiums:
  If a policyholder misses premium payments, the policy may lapse, resulting in a claim denial. However, insurers are required to send advance notice of a lapse. If Security Benefit Life Insurance Company failed to comply with state laws on notification, the policy may still be valid, and you may have grounds to contest the denial.
• Errors or Omissions on the Application:
  Claims may be rejected if the insurer discovers discrepancies in the initial application. Even unintentional omissions—such as failing to report a prior medical condition—can lead to denial. Providing corrected information and supporting documentation can help clarify these issues.
• Exclusions or Policy Limitations:
  Life insurance policies often contain exclusions for certain causes of death or specific activities. Reviewing the policy’s terms is critical to determining whether an exclusion was properly applied. If it wasn’t, you may have a case for reversing the denial.
• Beneficiary Disputes or Changes:
  Disputes over the rightful beneficiary can lead to delays or claim denials. If the beneficiary designation was changed recently or if multiple parties claim the proceeds, Security Benefit may deny payment until the matter is resolved. Clear documentation of the insured’s intent can help settle disputes.
• Missing or Incomplete Documentation:
  A claim can also be denied if required documents—like a certified death certificate or completed claim forms—are not submitted or are incomplete. Ensuring that all paperwork is accurate and complete can help prevent this type of denial and strengthen your appeal.

Steps to Take After a Denial

If Security Benefit Life Insurance Company denies your claim, taking these steps may improve your chances of success:

1. Carefully Review the Denial Letter:
   The denial letter should explain the reason for rejection and outline the next steps for appealing the decision. Understanding the company’s reasoning is critical for crafting an effective response.
2. Collect Relevant Documentation:
   Gather everything you need to support your case, including:
   • The full policy document and any amendments or riders
   • Proof of premium payments and lapse notices
   • Certified death certificates and medical records, if relevant
   • Correspondence with Security Benefit Life Insurance Company
   • Beneficiary designation forms and related documents
3. Prepare a Comprehensive Appeal Letter:
   In your appeal, address the reasons for the denial directly. Include additional documentation, clarify any discrepancies, and explain why the claim should be approved. A well-organized appeal can sometimes significantly improve the chances of a favorable outcome.
4. Consult a Life Insurance Attorney:
   If you’re unsure how to proceed or if the denial was upheld after your first appeal, consulting a life insurance attorney can help. An experienced attorney can identify procedural errors, gather additional evidence, and advocate on your behalf.
5. Consider Filing a Complaint With State Regulators:
   If all else fails, filing a complaint with your state’s insurance department may prompt further review. Regulatory authorities can investigate whether Security Benefit Life Insurance Company followed proper procedures.

Example of a Claim That Could Be Denied

A claim might be denied if the insured didn’t fully disclose a pre-existing condition on their application. For instance, if the insurer later discovers that the insured omitted a medical condition, they might refuse to pay. However, if the condition was unrelated to the cause of death, providing medical records and clarifying the omission could demonstrate that it wasn’t material. This may help overturn the denial.

Interpleader Lawsuits and Beneficiary Disputes

In cases where multiple parties claim the same life insurance benefits, Security Benefit may file an interpleader lawsuit. This process involves depositing the policy proceeds with a court and asking the court to determine who is entitled to the money. If you’re named in an interpleader, providing documentation that clearly shows the policyholder’s intent—such as beneficiary designation forms and related correspondence—can help. Seeking legal counsel may be crucial in protecting your rights during this process.

Florida Claims Against Security Benefit Life Insurance Company

For Florida residents, state-specific laws provide additional protections. Florida insurance regulations require insurers to follow strict notification procedures before denying a claim. If Security Benefit Life Insurance Company failed to meet these standards, it may strengthen your case. Consulting a Florida-based attorney familiar with these laws can help identify procedural violations and use them to support your appeal.

Frequently Asked Questions (FAQs)

What if my claim was denied due to a lapse in premium payments?
Verify whether Security Benefit sent proper lapse notices. If they failed to comply with state laws on notification, the policy may still be considered active, and you may have grounds to appeal the denial.

Can I appeal a denial based on an error in the application?
Yes, many application-related denials can be appealed. If the omission or error was not material to the policy’s approval, or if it didn’t relate to the cause of death, submitting corrected information and supporting documentation may help.

What should I do if there’s a dispute over the rightful beneficiary?
Disputes over beneficiaries require clear documentation of the insured’s intent. This may include original beneficiary forms, updated designations, and any correspondence between the policyholder and Security Benefit. Consulting a life insurance attorney can help clarify your position and ensure your rights are protected.

What if Security Benefit applied an exclusion incorrectly?
Review the policy terms carefully and gather evidence that demonstrates why the exclusion doesn’t apply to your case. Submitting a detailed appeal that clarifies these issues may help reverse the denial.

How the Law Offices of Jason Turchin May Help

If Security Benefit Life Insurance Company denied your life insurance claim, the Law Offices of Jason Turchin may be able to help. With experience handling life insurance disputes, we can guide you through the appeals process and work to secure the benefits you deserve. Call us at 800-337-7755 or start a live chat today to learn more.