Obtaining life insurance is an important part of protecting loved ones, but certain situations may result in a denied claim if you die. Recognizing what may result in a denial can help reduce the risk that your loved ones will not be able to obtain funds when you pass away and they are facing unexpected financial strains. You need a life insurance lawyer if you claim was delayed or denied.
Smoking: If you smoke, then you need to be honest when you obtain life insurance. A lie about your smoking habits can result in denied claims when your loved ones are faced with unexpected financial challenges. Even if you have quit smoking, you may still be required to claim that you smoke on a life insurance claim. In most cases, the insurer will have a set period of time before you can claim that you do not smoke. The period of time before you claim to be a non-smoker will vary between insurers. In some cases, you may have to wait three years while other insurers may want you to be free of cigarettes, cigars and similar tobacco products for at least five years. Smoking can put your health at risk and it increases the chances that you will pass away. Although it may seem that your claim will be denied, in most cases it will only result in a slightly higher premium, particularly if you have already quit.
Hiding Criminal Charges: A life insurance company will usually run a basic background check to verify your claims. If you have been involved in major moving violations, been charged with a DUI or have other criminal charges on your record, do not conceal them when you are applying for life insurance. It is never a good idea to apply for life insurance with false information. A basic background check will find any criminal history on your record and a small lie about your background may result in a denial of insurance.
Not Being Honest About Your Health: Poor health and pre-existing conditions may result in a denial or an increase in your premiums, but making a claim that you do not have any health concerns may be a bigger problem than you expect. If you have a pre-existing medical condition that results in your death, then your insurer may refuse to pay loved ones after your death because of a small lie. Do not lie about your current health. Although term insurance may not be available if you have poor health, other forms of coverage may be possible despite your pre-existing condition. Insurance depends on your situation, your current health and the type of plan you select. A pre-existing condition does not always result in a denial, but lying about the condition may result in a refusal to pay.
Concealing Mental Health Issues: During an application for coverage, do not lie about your mental health. If you have struggled with depression, anxiety or other mental health conditions, then do not lie about these conditions. The existence of a mental health condition does not necessarily mean you will not be able to obtain coverage; instead, it means that you may need to pay a slightly higher premium than those who do not have a condition. The fear that a life insurance policy may be denied can make it tempting to lie on your application. Unfortunately, a small lie on your application can mean big problems for your loved ones. The key to getting the right coverage and plan that can help you reduce your worries about the financial stability of loved ones is focusing on your needs and providing honest answers on your application.