Denied Life Insurance Claim – Why Does It Happen?
One of the things that brings many people great peace of mind is knowing that their loved ones are financially protected. They can do this by taking out life insurance. Once they do so they have confidence in knowing that they have taken that the right steps. There are times however when this can go wrong. On occasion a beneficiary is faced with a Denied Life Insurance Claim. This is most unfortunate and distressing for the beneficiary.
There are different reason as to what a Denied Life Insurance Claim can occur.
Denied Life Insurance Claim Because Of Claim Being Contested
There are so many different types of life insurance policies that can be bought today. Some of these are sold with no medical examinations required. Others are sold with there being no medical questions asked. However, quite often these insurance policies can have clauses built into them. These are clauses to protect the insurance companies. The clause may state that the policy will not be in effect for a certain period of time. In the event of the death of the insured. It may state that there will be no insurance payout if the insured dies within a two-year, for example.
If this happens where the insured dies in that time, the payout of the policy will be contested. This means that the beneficiary is now faced with a Denied Life Insurance Claim.
Denied Life Insurance Claim Pertaining To Cause Of Death
Many individuals assume that when they take out life insurance that it is going to cover any cause of death that may be realized. Insurance companies can put restrictions on their life insurance products. They can exclude certain causes of death. For example, some insurance companies will have a clause that they will not honour the insurance if the death has been caused by suicide. In the past there used to be many more restrictions, but these have been loosened up as insurance providers are competitive with each other.
Denied Life Insurance Claim – Wrong Information
Insurance companies are going to carefully scrutinize any claim that they have to pay out. When the insured first took out the policy they were required to provide a significant amount of information. This information determined whether the insurance company was going to provide a life insurance product. Often the information comes a by way of a series of questions. The insured has to be absolutely sure that they answer these questions in a honest manner. If it turns out that it was discovered that the answers were not truthful or are inaccurate it can have an impact on the insurance claim. This can mean that the insurance company has grounds for not paying out the insurance policy. For this reason anyone buying life insurance must be absolutely sure that they answer each and every question in a factual manner.
Denied Life Insurance Claim – Non Payment
It is not unusual for a beneficiary to come across a life insurance policy. This a may be discovered after the insured has died. They are assuming that the insurance is valid and a claim can be made. For some this can lead to a great disappointment. Only to discover that the insured has not kept up with the insurance premiums. As a result the life insurance is no longer valid. Even if the insured paid into it a portion of time it may very well be that the policy is cancelled because the payments were not kept up.
These are a few of the common reasons of Denied Life Insurance Claims. The beneficiary who is in this situation is going to have to first to deal with the insurance company to confirm the reason the policy was denied. If they do not feel this is valid, then they have recourses available to them. They can contest the decision and then determine if they want to take further steps to fight the insurance company's denial. Our life insurance lawyers have an almost perfect track record of getting denied life insurance claims paid.