These days, it is wise to carry a life insurance policy no matter what your age. After all, a life insurance policy can provide payouts to your surviving beneficiaries (a spouse, children, etc.) in the event that something were to happen to you. One common "add-on" that many people opt for with their life insurance policies these days is that of mortgage protection. However, there are a few things that you should know about adding mortgage protection to your life insurance policy and what it could mean in the future for your beneficiaries.
What is Mortgage Life Insurance Protection?
Essentially, the purpose of mortgage life insurance protection is to pay off a portion or all of your existing mortgage in the event of your passing. This is ideal for families that would otherwise be unable to keep up with mortgage payments without the insured's income and is a common choice among households where one spouse works full-time while the other stays at home or works part-time. Keep in mind that, in most cases, you can only purchase mortgage life insurance protection if you and the spouse or partner listed as your beneficiary share a mortgage together.
Potential Causes of a Claim Denial or Delay
Unfortunately, as with any life insurance claim, after a person passes away, claim approval isn't guaranteed. The same applies to mortgage life insurance protection. Remember that the beneficiary must promptly provide proof of death in the form of a death certificate. From there, he or she must also provide paperwork proving the amount that is due on the mortgage, also showing proof that both the beneficiary and the insured were listed on the mortgage together.
There are countless reasons for delay or denials. Common ones include: material misrepresentation on the app; lapse; policy exclusions; beneficiary change post-divorce; and more.
You Need a Very Experience Life Insurance Attorney
If you have received a letter stating that your mortgage life insurance protection claim has been denied or delayed, it is important that you speak with a highly experienced life insurance attorney (one with at least 15 years of experience) as soon as possible. You can set up a consultation with an experienced attorney who has dealt with mortgage life insurance claim denials or delays in the past. From there, your attorney will begin work.
Don't let a mortgage life insurance claim denial or delay leave you feeling discouraged or hopeless. Schedule a consultation with a reputable life insurance attorney in your area today. There is still hope to appeal your claim decision and get the payout that you may deserve.