When a family in Florida loses a loved one, the pain and grief can be immense. Unfortunately, the practical costs can also be significant. This includes dealing with final expenses, hospital bills and funeral costs. When a life insurance policy refuses to pay out, surviving family members may face serious financial consequences. One veteran is fighting USAA, a major insurer for American military forces, in court after the company refused to pay out $1 million in life insurance benefits following the death of her husband.
Both the woman who filed suit and her husband were members of the Air Force and had banking and insurance policies with USAA. The woman's 52-year-old husband was an electrical engineer, a former Air Force captain and the family breadwinner after their military retirement. However, he suddenly passed away in 2016 after an aortic aneurysm. While the family relied on his income, they believed they would be protected under his USAA life insurance policy.
However, the company denied the life insurance claim. They say that the man answered a question incorrectly about his health history when applying for life insurance. The form asked if the man had ever consulted a doctor about a respiratory problem, and he said "no." However, he snored and had consulted a doctor about sleep apnea. The widow says that the question was not clear and that the company is simply looking for an excuse not to pay out on the claim.
While people buy insurance policies in order to protect their loved ones after they are gone, many insurance companies search for potential reasons to deny claims. Families who are dealing with denied life insurance claims can work with an insurance attorney. A lawyer can challenge an unjust benefits denial, negotiate with the insurer or even file a lawsuit to seek a payout on a legitimate claim.