Newark NJ Life Insurance Lawyers

Newark, NJ Life Insurance Lawyers – Denied, Delayed, and Disputed Claims

Legal Help for Life Insurance Beneficiaries in Newark, New Jersey

Life insurance is intended to provide financial stability to beneficiaries after the loss of a loved one. However, insurance companies do not always honor claims as expected, often citing technicalities, exclusions, or disputes over policy terms. If your life insurance claim has been denied, delayed, or challenged in Newark, NJ, you may have legal options to recover the benefits you are entitled to under New Jersey law.

At The Law Offices of Jason Turchin, we assist policy beneficiaries in resolving complex life insurance disputes, including wrongful claim denials, beneficiary challenges, and interpleader lawsuits. If you are facing difficulties with a life insurance claim in New Jersey, contact us for a free consultation at (800) 337-7755. You will not pay any fees or costs unless we win or settle your case.

Understanding Life Insurance Laws in New Jersey

New Jersey law governs life insurance policies through a combination of state regulations and contractual principles. Beneficiaries should be aware of the following legal aspects that may impact their claims:

1. New Jersey Contestability Period for Life Insurance

Under N.J.S.A. 17B:25-4, life insurance policies include a two-year contestability period from the date the policy takes effect. If the insured passes away within this period, the insurance company may:

• Conduct a review of the policyholder’s application for alleged misrepresentations.
• Deny benefits based on omissions regarding medical history, lifestyle choices, or high-risk activities.
• Require additional evidence before processing the claim.

However, not all misstatements on an application constitute legal grounds for denial. If the omission was not material to the cause of death, the insurer may be wrongfully denying benefits.

2. Non-Payment of Premiums and Policy Lapse in NJ

New Jersey law requires insurers to provide a grace period of at least 30 days before terminating a policy for non-payment (N.J.S.A. 17B:25-3). If an insurance company fails to properly notify the policyholder before cancellation, the denial may be invalid, and legal recourse may be available.

3. The New Jersey Slayer Statute – Denying Benefits for Homicide

Under N.J.S.A. 3B:7-1, a named beneficiary cannot collect life insurance proceeds if they are convicted of intentionally causing the policyholder’s death. In such cases, the insurance company may:

• Delay payment until a criminal investigation concludes.
• File an interpleader action, asking the court to determine the rightful beneficiary.
• Pay the proceeds to the contingent beneficiary or the insured’s estate if no alternate beneficiary is listed.

4. New Jersey Divorce and Life Insurance Beneficiary Rights

New Jersey law automatically revokes an ex-spouse’s right to life insurance benefits after divorce unless:

• The policyholder explicitly reaffirmed the ex-spouse as a beneficiary post-divorce.
• The policy is part of a court-ordered divorce settlement.
• The policy falls under ERISA regulations, which may override state law.

If a former spouse is disputing a life insurance payout, legal representation is critical to protecting your rights.

Common Reasons Life Insurance Claims Are Denied in New Jersey

Insurance companies frequently deny claims for various reasons, including:

1. Alleged Misrepresentation on the Application

Insurers may claim that the policyholder failed to disclose a medical condition or lifestyle habit that would have affected underwriting decisions. However, under N.J.S.A. 17B:25-17, misrepresentation must be material and directly related to the cause of death for a denial to be legally valid.

2. Failure to Pay Premiums

If an insurer claims the policy lapsed, beneficiaries should verify whether:

• The grace period was properly honored.
• The policyholder had automatic premium payments that may not have processed.
• The insurer provided written notice before cancellation, as required by New Jersey law.

3. Policy Exclusions

Many life insurance policies include exclusions for:

• Suicide within the first two years.
• Drug or alcohol-related deaths.
• Hazardous activities, such as skydiving or scuba diving.

However, some exclusions may be ambiguous or misapplied by the insurer, requiring legal review.

4. Beneficiary Disputes

If multiple individuals claim the same benefits, the insurer may delay payment and file an interpleader lawsuit. Disputes often arise due to:

• Last-minute changes to the beneficiary designation.
• Conflicts between a will and the life insurance policy.
• Children, ex-spouses, or other relatives contesting the validity of the policyholder’s intent.

How a Newark Life Insurance Lawyer Can Help

If your life insurance claim has been denied, delayed, or disputed, legal representation may be necessary to:

✔ Analyze the policy terms and New Jersey insurance law to determine whether the denial is justified.

✔ Challenge improper denials based on misrepresentation, lapse, or exclusions.

✔ File an appeal or negotiate directly with the insurance company to expedite processing.

✔ Pursue a lawsuit if the insurer is acting in bad faith.

With an experienced Newark life insurance attorney, beneficiaries may stand a stronger chance of recovering their rightful benefits.

Frequently Asked Questions About Life Insurance Claims in New Jersey

How Long Do I Have to Challenge a Denied Life Insurance Claim in NJ?

Under N.J.S.A. 2A:14-1, most breach-of-contract claims for denied life insurance benefits must be filed within six years of the denial. However, some policies impose shorter appeal deadlines, so acting quickly is recommended.

Can a Life Insurance Claim Be Delayed Indefinitely?

No. New Jersey law requires insurers to process valid claims within a reasonable timeframe, typically 30 to 60 days after receiving all necessary documents. If an insurance company is unreasonably delaying payment, beneficiaries may have a bad faith claim.

What Happens if a Life Insurance Policyholder Dies During the Contestability Period?

If the insured dies within two years of purchasing the policy, the insurer has the right to review the application for fraud or misrepresentation. However, if no intentional misrepresentation is found, the claim should still be paid.

Can a Life Insurance Lawyer Help With a Beneficiary Dispute?

Yes. If multiple parties claim the same policy benefits, an attorney can:

• Represent beneficiaries in court hearings or settlement negotiations.
• Challenge fraudulent or coerced beneficiary changes.
• Defend rightful beneficiaries in interpleader lawsuits.

How Much Does It Cost to Hire a Newark Life Insurance Lawyer?

At The Law Offices of Jason Turchin, you won’t pay any fees or costs unless we win or settle your case. We handle life insurance cases on a contingency fee basis, meaning there are no upfront legal fees.

Get Legal Help for Your New Jersey Life Insurance Claim Today

If you are struggling with a denied, delayed, or disputed life insurance claim in Newark, NJ, our legal team may be able to help you recover the benefits you deserve.

📞 Call (800) 337-7755 for a free consultation today.