Many people dread the thought of dying and leaving their loved ones with significant debt. Life insurance claims are designed to provide a cash payout to a designated beneficiary in the event of the policyholder's death. Although these policies can prove valuable tools when it comes to financial planning, they can become a source of stress as well. Hiring an attorney to help with the claims collection process can be beneficial.
An attorney can deal directly with the life insurance company.
In order to collect on a life insurance policy, you will need to begin the claim process. Contacting the insurance company is the first step, but you must also fill out a mountain of paperwork in order to put the claim process into motion.
Dealing with this paperwork on top of estate and funeral planning can be a real challenge. Hiring an attorney to deal directly with the insurance company and fill out the necessary paperwork can help ensure you receive your life insurance claim payout quickly and without the added stress of handling the process yourself.
An attorney can disprove any potential rejection claims.
Insurance companies often launch a complete investigation into the circumstances surrounding the purchase of a life insurance policy and the death of the policyholder. These investigations are designed to uncover any false information that could negate the beneficiary's right to the policy's payout.
An attorney will be able to look over your loved one's insurance policy to determine if the information provided on the application was factual. A good attorney will also be able to provide evidence proving that your loved one's death was not suspicious and that you are entitled to a payout. Allowing your attorney to deal with potential rejection claims will help you streamline the claim filing process and prevent added stress from affecting you during your time of grief.
An attorney can ensure payment to the proper party.
When a life insurance policy is signed, a beneficiary is named by the policyholder. This beneficiary is the person that will receive the payout once a life insurance claim is processed. In the event that a life insurance policy isn't updated and the beneficiary dies before the policyholder, the money should go to a secondary beneficiary.
If no beneficiaries are available, the payout needs to go directly into the deceased's estate. An attorney will be able to help ensure that any money paid out by a life insurance policy is directed to the appropriate party for legal disbursement.