When a life insurance claim is not paid within thirty days from the date the insurer submitted all the required documents to the insurance company then the claim will be considered as delayed. Delays in paying claims are caused by various reasons. One of the most common reasons for non payments is the problem with the beneficiary designations. The beneficiary on the policy is minor when an insured list minor child as the beneficiary, then the life insurance claim may be denied. This is because the minor child cannot receive the proceeds without guardian. A well efficient lawyer will help the expedient payment of the claim by making sure the proper guardianship documents are field. The delayed life insurance claims can be got back only with the help of the efficient lawyers. The insured did not name a spouse as a beneficiary in a community property state. In a community property state a spouse may also claim at least half of the proceeds from the life insurance policies on a descended spouse. Hence a life insurance lawyer will help to understand all the rights. The life insurance policy was included in a will or a trust. A life insurance policy is a always a contract and it cannot be controlled by will. Mostly many people will include their life insurance policy with the will which often results in life insurance claim delays.
Reasons for the delay:
The beneficiary was not updated after a major life change. When the people divorce, marry have children etc, then they will usually have claims to their life insurance policies. If they fail to do so then the several people and they may also have claims to the same policy proceeds after their death. If this is the case, a case may be delayed because an insurance company may prepare to file an interpleaded. When the beneficiary is not named an insurance company will always pay the proceeds either according to the law of the state where the policy is taken out or according to the policy term. This may result in delayed life insurance claims. When the beneficiary is not a specific person, but a category or the group of person, but under the category of the group of people named collectively, it may also delay the life insurance claim. If the primary life insurance beneficiary is not available then the proceeds are usually paid to a contingent beneficiary.