Wrongful deaths are sudden and unexpected, often leaving a lasting scar long after family members pay their final respects. These tragic situations are hard to bear and often leave survivors in a serious financial crisis, with medical expenses and funeral costs piling up.
You may be wondering what happens to the deceased’s life insurance policy if the family successfully secures a compensation award in Louisiana. Thankfully, life insurance typically does not factor into a settlement in this case. Learn more about the role of insurance in wrongful death settlements and keep reading.
Wrongful death lawsuits and a payout from a life insurance policy are considered separate matters in the state of Louisiana. The purpose of both is to provide financial support to surviving family members after a loved one’s death. However, that is where the similarities end.
A wrongful death claim is a civil legal action your attorney brings against someone whose behavior, whether negligent, reckless, or intentional, led to your loved one’s untimely death. On the other hand, a life insurance policy is a benefit your loved one purchased to help provide you with financial resources after death, regardless of the cause, be it natural, wrongful, or otherwise.
In a wrongful death claim, the settlement amount is calculated based on the merits of the case. That means the total costs of the deceased’s medical bills, funeral expenses, and your loss of income, are all factored into your settlement amount. The court may also consider intangible losses like emotional distress and loss of companionship.
A life insurance provider is obligated to payout the set amount of insurance your loved one purchased before their death. For example, if your family member had a $250,000 policy, you would receive $250,000, no more than that. While there may be exclusions on the policy, those are typically uncovered incidents, such as suicide, not wrongful death. The insurance company does not have the legal right to recover (also called subrogate) its payout from your wrongful death settlement.
While this blog is helpful to understand the role of life insurance in wrongful death settlements, it does not take the place of professional legal advice that is specific to your unique circumstances.
Reach out to Kopfler and Hermann now and discover how we put our clients first. Our friendly and approachable legal team provides each plaintiff with the individual attention you deserve, and because we work on a contingency fee basis and offer free consultations, you have no reason to wait for help. Call our office now.
