Can a life insurance company refuse to pay a beneficiary?

In many cases, insurance companies keep their promise and pay the benefits to the beneficiary after the insured’s death. So, yes, life insurance companies can deny claims and refuse to pay out and if you’re here, chances are you’re in the same situation.

Can an insurance company take back a death benefit?

If the person who was declared dead later on is discovered alive, the insurance company has the right to take back the death benefit proceeds plus interest.

Who receives the death benefit from a life insurance policy?

A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment.

Do life insurance companies require an autopsy?

There is no law that states an autopsy must be performed when someone dies. If an insurer denies a claim such as the one discussed here they’re acting in bad faith to the beneficiary. The burden of proof means that the beneficiary must prove the death circumstances are not excluded under the policy’s Exclusions Clause.

Do life insurance policies require cause of death?

Life insurance provides financial protection to your loved ones if you die, but policies don’t pay out in every situation. In general, life insurance policies cover deaths from natural causes and accidents. Life insurance policies cover suicide, but only if a certain amount of time has passed since buying the policy.

How do life insurance companies verify death?

Life insurance companies do not automatically issue a check when someone dies. In fact, the company is probably not even aware of the death until they are contacted by the beneficiaries. The beneficiaries will be required to submit at least two pieces of information along with a claim form and a death certificate.