We are happy to announce the resolution of a denied AuguStar Life Insurance Claim
Life insurance policies are designed to provide financial protection to policyholders' loved ones in the event of their death. However, there are some lesser-known exclusions that could potentially result in a denied claim, catching beneficiaries off guard. Our top life insurance law firm fights all denied life insurance claims and wins.
Firstly, engaging in high-risk activities such as extreme sports or hobbies could lead to claim denial if the policyholder failed to disclose these activities during the underwriting process. Insurance companies assess risk based on the information provided by the policyholder, and failure to disclose activities that significantly increase the risk of death could invalidate the policy.
Secondly, suicide within the policy's suicide exclusion period, typically one to two years from the policy's start date, may lead to a denied claim. While most policies have this exclusion to prevent individuals from taking out a policy with the intent of self-harm, beneficiaries may not receive the death benefit if the insured dies by suicide during this period.
Thirdly, misrepresentation or non-disclosure of medical history during the application process can also result in claim denial. If the policyholder conceals or provides inaccurate information about their health status, such as a pre-existing medical condition or smoking habit, the insurance company may deny the claim based on the grounds of material misrepresentation.
Lastly, death resulting from illegal activities or criminal behavior may not be covered under a life insurance policy. If the insured dies while engaging in illegal activities, such as drug trafficking or participating in a criminal act, the insurance company may refuse to pay out the death benefit, as the policy typically excludes coverage for deaths related to illegal actions.
Understanding these lesser-known exclusions is crucial for policyholders and beneficiaries alike to ensure that they are adequately protected and aware of the circumstances under which a claim may be denied.
Our top life insurance lawyers are here to help.