Creditor insurance is another type of insurance that can act as part of a person's financial plan for future financial security. Creditor insurance (also known as creditor's insurance or creditors group insurance) provides financial assistance when you cannot make payments on your debts. This financial assistance is meant to make sure your loans or credit cards stay in good standing, your credit rating is not negatively impacted, and -- in the event you suffer a fatal injury or illness -- the debt is paid off so that any surviving family members are not affected by it.
That's what the intention of creditor insurance is, and that's why you spend hard-earned money purchasing it. If you are temporarily or permanently unable to work, creditor insurance should be there for you. But that isn't always what happens. In fact, creditor's insurance -- though a great addition to anyone's financial plan -- is owned and operated by insurance companies whose primary concern is profits, and your claim impacts their profits. Your creditor insurer may try to delay or deny your rightful claim to benefits. When this occurs, you need the benefit of an experienced insurance dispute lawyer. Unlike the insurer, Geoff Aylward, reputable insurance dispute lawyer in Newfoundland and Labrador, has your interests as his primary concern and will aggressively advocate your rights. Contact Geoff Aylward any time for a consultation.
These coverages are often very expensive compared to the same level of payment benefit that you would obtain under an income disability policy. As well, the premium generally remains the same even as the balance on the debt declines.
Reasons for Disputes with Creditor Insurance Claims
You purchased creditor insurance policy to protect your ability to pay debts if you become temporarily or permanently disabled, lost your job through no fault of your own, or contracted a critical illness. When the time comes and you need to invoke the benefits of your creditor insurance, you may think it is as easy as completing an application and submitting the claim. Claims, however, require specific information and documentation. You are probably under a certain amount of stress if you have been injured, and in these circumstances, it is easy to overlook something. An insurance company will deny your claim, even for frivolous reasons. Some of the more common reasons to deny a claim include:
- Claimant lied on application. This happens if you intentionally lied on your application. But if can also happen innocently. For instance, maybe you had a routine test taken by your doctor but failed to mention it on the application. You may not have known or been informed that the disclosure of this routine test was required. Insurance companies will review medical records with a fine comb to uncover an opening that allows them either to delay or deny your claim.
- Injury or illness does not qualify. This often happens when a creditor insurance agent is unqualified to discuss the fine details and legal repercussions of the policy, and so the claimant is misinformed of what the policy is and what it covers at the time he or she purchases it. It also refers to pre-existing conditions, which may or may not be applicable. It is always important to make sure you know exactly what your policy covers and does not cover before you purchase it.
- Insufficient evidence documenting illness. You must provide proof of your illness and proof of your inability to work. If the application is not complete, the insurance carrier will identify the absence of specific information or documentation and deny the claim.
Creditor insurance claims can be denied for multiple reasons, both valid and invalid. If your creditor insurance claim has been denied, then you should seek the advice of Geoff Aylward, reputable creditor insurance dispute lawyer in Newfoundland and Labrador. He can review your claim and the insurer's reason for denial and advise on the latter's validity and what you should do to move forward with your claim.
Reasons to Hire an Insurance Dispute Lawyer
With all insurance claim disputes, an experienced lawyer should be consulted. But when it comes to creditor's insurance, there is a real need to have an insurance dispute lawyer review your policy, the claim you submitted, its supporting evidence or documentation, and the dispute or denial letter you received.
An experienced insurance dispute lawyer can identify when a creditor insurance company is employing a delay/deny tactic that intimidates unsuspecting claimants in the hopes they drop the claim. The lawyer can also identify where there is/was a real problem with your claim and devise a strategy to correct the error(s) and appeal the denial through the insurance company's internal process, or alternatively, pursue litigation. Geoff Aylward, reputable insurance dispute lawyer in Newfoundland and Labrador, can help with your creditor insurance dispute needs. Specifically, he will provide:
- Experience, reputation, and knowledge on how to successfully counter an insurance dispute;
- Keen insight in the creditor's insurance industry, their policies and their motivations for delay and deny tactics;
- Resources to provide comprehensive representation;
- Knowledge of the law, the procedures, the court system, and the judges; and
- Capability to strategize, negotiate, or litigate on your behalf towards a successful end.
Comprehensive, Compassionate Insurance Dispute Lawyer
Have you been denied benefits through your creditor's insurance? Creditor's insurance dispute lawyer Geoff Aylward offers strong advocacy and legal counsel in your fight to obtain the compensation you are entitled. He focuses on personal injury, insurance dispute and malpractice matters in Newfoundland and Labrador. Contact creditor insurance dispute lawyer Geoff Aylward today either online or at 709-726-7260.