Life insurance is often presented as simple and affordable. You apply online, skip the medical exam, and get covered in minutes. But one mistake during the application process or a misunderstanding of the policy terms can leave your family without the benefit they were counting on. If you need Minnesota life insurance policy dispute help call us.
We see this happen constantly. Claims that should be paid are denied because of overlooked disclosures, confusing language, or missed deadlines. This guide explains the most common errors people make when buying life insurance and how to avoid them.
No Medical Exam Does Not Mean Guaranteed Payout
Policies without a medical exam are popular because they seem easy and accessible. But even if a doctor does not examine you, the insurance company will still review your health history through prescription records and insurance databases.
We represented a family whose husband died fifteen months after getting coverage. He had answered the application questions to the best of his knowledge. After he passed, the insurer found a prescription he had not listed and denied the two hundred fifty thousand dollar claim. This occurred during the contestability period, which usually lasts two years after the policy begins. During that time, any misstatement or omission can be grounds for denial.
How to avoid this problem
Be completely honest on your application. If you are unsure how to describe a health issue or prescription, get help from a licensed agent or attorney. Even small omissions can void a claim.
Low Premiums Can Come with Limited Coverage
Low monthly payments are attractive, but the cheapest policy is not always the best. Many policies with lower premiums contain exclusions or limited benefits.
In one case, a woman purchased a digital policy that cost under ten dollars per month. When she died, her son filed a claim and learned the policy excluded her cause of death due to her medical history. That exclusion was in the fine print she never read.
What to do before buying
Ask to see the entire policy, not just a summary. Check for exclusions, benefit limits, and expiration dates. Make sure the policy covers the risks you and your family actually face. If something is unclear, ask for clarification in writing.
Living Benefits Can Be Difficult to Access
Some policies allow you to access part of your benefit while you are still alive if you are diagnosed with a serious illness. These are often marketed as accelerated benefits or chronic illness coverage.
These features sound generous, but they come with strict requirements. One client was diagnosed with late stage cancer. Her policy included an accelerated benefit, but her claim was denied because her doctor did not submit the proper documentation in time. The delay meant her family had to fight for the benefit while she was already in hospice care.
What to check beforehand
How does the insurer define chronic or terminal illness
What proof is required and who needs to submit it
Are there strict deadlines or waiting periods
If you think you might rely on living benefits in the future, read the terms carefully and know exactly what is required to qualify.