Many different types of Life Insurance require different stipulations and clauses to be met before they can be issued. Because of this, many people may find that they do not actually qualify for a life insurance policy, or may find that, halfway through the effective life-span of a policy, they are cut short due to inconsistencies. Thankfully, there are some ways to work around this issue when attempting to get life insurance for your family.
One such way is the Mortgage Life Insurance. This type of life insurance allows a couple or family to apply and get a life insurance policy on someone else that you share a mortgage with. Unlike most other types of life insurances, though, the money does not go directly to a beneficiary of your choosing. Instead, the money goes directly to paying off the rest of the mortgage that the two people shared. This will usually be used on such things like a home or business building, as safeguarding the most dominant payments is usually a primary concern after a death in the family.
Because the Mortgage Life Insurance policies are a bit more specific when it comes to who is able to get one, there are some rules that other life insurance policies do not have. This is due to the very nature of what a mortgage life insurance policy is. Instead of possibly having a person as a beneficiary, it is based almost solely on economics, or business ties. As such, there are plenty of ways the claims for a mortgage life insurance can be denied.
Denial Reasons of Mortgage Insurance
There can be quite a few reasons as to why a mortgage insurance claim is rejected. Because many of these end up being very business-heavy deals, many points of conflict will be heavily scrutinized. They will also be analyzed, as there are some points that can be seen as fishy.
One major denial or delay factor is the time frame between setting up the mortgage insurance, and the point at which the insured died. This is because of the ties a policy may have with financial gain. If the death occurs within a certain time frame from the start of the policy, suspicions may be cast on whether or not the death was foreseen or not, and whether there was foul play involved.
Another issue that can come up is who is to blame for a denial in a mortgage life insurance claim. Instead of the claim being between just the insurance company and the insured, with a mortgage insurance, a preferred bank is also used. Due to this point, it can be convoluted as to who actually called for the denial or delay, which can slow down the process even more.
No matter what the reason for denial is, always make sure to consult a skilled and experienced life insurance attorney before making any moves. An attorney will be able to accurately and efficiently figure out if the denial of the claim is fair. If not, they can also help to work with you through the proceedings, and in the end help you claim your benefits. Because, no matter what, you deserve to be treated as a human being, not as a bank number.