As a policyholder, you pay insurance premiums with an expectation that the insurance company will honor the terms of the policy should you submit a legitimate claim. However, some insurance companies may deny your claim by invoking ambiguous policy language or without just cause. For some, this is a common practice — denying claims despite the validity — and not investigating the claim further unless you choose to take legal action.
Insurance companies produce higher profits when claims are not filed or when you, the policyholder, fails to collect. This may explain, in part, why we find many policyholders that are offered or paid a settlement well below the full benefit value owed under their policy. Your insurance company has the resources to protect their interests, as well as the knowledge to interpret policy language in their favor to minimize payout or outright deny claims.