Delayed Life Insurance Claims in New York City

Delayed Life Insurance Claims in NYC

Is Your Life Insurance Claim Taking Too Long? Here’s What You Can Do

When a loved one passes away, life insurance benefits are meant to provide financial security. However, some beneficiaries face long delays before receiving their payout. If your life insurance claim is delayed in New York City, it may be due to unnecessary insurance company tactics—or even bad faith practices.

At The Law Offices of Jason Turchin, we help beneficiaries push back against unreasonable claim delays. If your payout is taking too long, call (800) 337-7755 for a free consultation to learn about your legal options.

Why Do Life Insurance Companies Delay Claims?

While some delays may be legitimate, others occur due to insurance company stalling tactics. Here are some of the most common reasons insurers cite for delaying payments:

1. The Claim Is Under Review During the Contestability Period

If the policyholder passed away within the first two years of purchasing the policy, the insurer may conduct a contestability review. This means they will investigate:

• The accuracy of information on the application.
• Whether the policyholder disclosed all medical conditions and lifestyle risks.
• Any potential fraud or misrepresentation.

While this process is legal, insurers sometimes use it as an excuse to delay claims unnecessarily.

2. The Insurance Company Requests Additional Documentation

Insurance companies may ask for:

• A certified death certificate.
• The policyholder’s medical records.
• A copy of the life insurance policy.
• Proof of premium payments.

Although some documentation is required, excessive requests may indicate an attempt to delay the claim.

3. There Is an Ongoing Investigation Into the Cause of Death

If the policyholder’s death is classified as homicide, suicide, or an accident, the insurer may delay payment while waiting for:

• Autopsy reports.
• Police investigations.
• Medical examiner findings.

These reviews can take months, leaving beneficiaries without financial support. If an insurer is stalling beyond a reasonable period, legal action may be necessary.

4. Beneficiary Verification Issues

If the insurer cannot verify the identity or eligibility of the beneficiary, they may delay payment. Common verification issues include:

• Beneficiaries not listed properly in the policy.
• Claims involving ex-spouses or former dependents.
• Cases where the named beneficiary has also passed away.

If your claim is delayed due to a missing or incorrect beneficiary designation, you may need legal assistance to resolve the issue.

5. The Insurance Company Is Acting in Bad Faith

In some cases, delays are deliberate tactics used by insurers to avoid paying valid claims. Bad faith practices may include:

• Repeatedly requesting unnecessary documents.
• Ignoring communication from the beneficiary.
• Failing to provide a clear reason for the delay.

New York insurance laws prohibit bad faith practices, and policyholders have the right to take legal action if they are being unfairly denied or delayed.

How Long Should a Life Insurance Claim Take in New York?

New York law requires insurers to process life insurance claims promptly. Most legitimate claims should be paid within 30 to 60 days once all required documents are submitted.

However, the timeline may be extended if:

• The policy is under contestability review.
• There is an ongoing beneficiary dispute.
• The claim requires additional medical or legal review.

If your claim has been delayed for more than 90 days, it may be time to consult a lawyer.

What to Do If Your Life Insurance Claim Is Delayed in NYC

If your payout is taking too long, take the following steps:

1. Request a Status Update in Writing – Contact the insurer and ask for a written explanation for the delay.

2. Review the Policy Terms – Make sure you understand the company’s payout obligations.

3. Submit All Required Documents Promptly – Delays often occur due to missing paperwork.

4. Consult a Life Insurance Lawyer in NYC – If the delay is unreasonable, a lawyer may be able to negotiate a faster resolution or file a claim for bad faith.

Can You Sue an Insurance Company for Delaying a Life Insurance Claim?

Yes. If an insurer is intentionally delaying payment without a valid reason, beneficiaries may have a claim for:

• Breach of contract – Failing to honor the policy’s payout obligations.
• Bad faith insurance practices – Unreasonable delays or stalling tactics.
• Interest penalties – In some cases, beneficiaries may be entitled to interest on delayed payments.

A life insurance attorney in New York City can help you determine whether legal action is necessary.

Frequently Asked Questions About Delayed Life Insurance Claims in NYC

How Long Can an Insurance Company Legally Delay a Life Insurance Claim?

New York law requires insurers to settle claims in a “reasonable” timeframe, typically within 30 to 60 days. If the delay extends beyond 90 days, legal action may be necessary.

What Can I Do If My Life Insurance Claim Is Stuck in Review?

If your claim is under review for an extended period:

• Follow up with the insurer regularly.
• Request a written explanation for the delay.
• Consult a lawyer if the insurer is unresponsive.

Can an Insurance Company Deny My Claim After Delaying It?

Yes, in some cases, insurers delay claims to find a reason to deny them. If this happens, you may have grounds to challenge the denial.

What If the Delay Is Due to an Ongoing Investigation?

If the claim is delayed due to a homicide or accidental death investigation, the insurer may be waiting for law enforcement or medical examiner reports. However, excessive delays may warrant legal intervention.

How Can a Lawyer Help With a Delayed Life Insurance Claim?

A lawyer can:

• Investigate the delay and push for payment.
• Communicate with the insurer on your behalf.
• File a lawsuit if the insurance company is acting in bad faith.

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

At The Law Offices of Jason Turchin, you won’t pay any fees or costs unless we win or settle your case. Our contingency fee structure ensures you can fight for your claim without upfront costs.

Get Help With Your Delayed Life Insurance Claim in NYC

If your life insurance claim has been delayed in New York City, don’t wait any longer. Our legal team may be able to help you get your benefits faster and hold the insurer accountable.

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