Individuals that are shopping for life insurance have the opportunity to purchase different types of insurance products. One of these is the Accidental Death And Dismemberment life insurance. This can vary in the amount of coverage. The insurance shopper once deciding on the policy they want will name one or more beneficiaries.
In the event of a mishap the beneficiary has to present the claim for payment of the policy. This is when they can run into difficulty such as a denied AD&D life insurance claim. One may be thinking that the process of issuing this type of claim should be straightforward. It is meant to be that way. In many cases it is not.
The insurance companies are in the business of making money. They are not keen on having to pay out insurance claims of any type. It is quite common for them to issue a denied AD&D life insurance claim. The beneficiary is usually shocked by this type of experience. They cannot fathom why the policy is not being honoured. There are a lot of common reasons that the insurance company will come up with to justify a denied AD&D life insurance claim.
The Responsibility Of The Insured
When an individual is applying for AD&D life insurance they are given a questionnaire that they are compelled to fill out. It contains a lot of questions that require precise answers. The insured must be astute at answering each question as completely as possible and in a fully honest manner. When a beneficiary puts in a claim the insurance company is going to scrutinize this application. It can often be the basis for the denied AD&D life insurance claim.
Some insurance companies have specific mandates that apply for the first year or the first two years of the AD&D life insurance policy.
Even though the individual is paying the premiums from the time they sign the contract. In many cases, there is a two year contestability period. If an individual dies within this period of time it opens the door for intense scrutiny by the insurance company. Here they are able to look for reasons to create a denied AD&D life insurance claim.
There are certain areas that they will focus on. One of these well be the cause of death. The insurance is in place to cover accidental death.
Cause of Death
The insurance company will look to see if there are any indications that the death could be as a result of suicide. Sometimes it is difficult for the beneficiary to discern what a accidental death may be. For example, an individual may be going through surgery which results in death. To the beneficiary this is an accident. The insurance company may look at this totally different. In fact, there will be detailed information in the policy itself as to what constitutes a accidental death and dismemberment. For this reason it is extremely important that insurance shoppers understand what they are being covered for.
Insurance companies are well versed at creating a long list of exclusions when it comes to accidental death. Some of the most common ones are physical or mental illness. If the cause of death is as a result of this it is not classed as an accident. If an individual hurts themselves and then it leads to death this may be another exclusion. Any circumstance that may have brought on the accident that was the cause death could be another exclusion. For example ,individuals that were driving when drunk and it lead to death would be something that is excluded from the policy. The same would apply if one had been using drugs.
What Happens With A Denied AD&D Life Insurance Claim?
What happens with a denied AD&D life insurance claim is all going to depend on the beneficiary. First they want to have in a writing as to the cause of the denial from the insurance company. Then they want to pursue this matter if they feel they have a valid claim. They can do this by speaking to one of our highly experience AD&D life insurance lawyers. Our life insurance law firm resolves AD&D claims almost all the time.