There aren’t many instances that life insurers are denying the life insurance claim, it’s worthwhile to be aware of what might make a claim disputed. In this post, we’ve described some of the primary reasons that claims can, unfortunately be denied.
Not disclosing medical conditions and Lifestyle Information
When you buy life insurance it is essential to disclose any medical condition or other risk aspects. If you do not provide exact information in the application process, any claim you make on the life insurance policy may be denied in the future.
Failure to provide information while purchasing an insurance policy for life could be considered to be a false representation. It could be a incorrect or false statement(s) or withholding of details. In certain cases the misrepresentation may mean that the policy was issued that might otherwise have been refused.
The majority of policies have the clause of contestability (usually between two and three years) where the insurance company can require additional information about the cause of death. It could take the form of medical or post-mortem documents to enable the insurance company to determine if any information was withheld in the application procedure. If the insurer discovers any evidence of fraud, the policy could be canceled and your beneficiary could not receive a benefit in the event of a death. Be aware there are a variety of ways of confirming the information you submit on your application.
For help with a denied life insurance claim click here…
What type of information will insurance companies demand me to give when I fill out a life insurance form?
Remember: You must receive an original copy of every application in order to obtain life insurance from your selected insurance provider (or the providers). It’s crucial to go over your application’s details and then contact the insurance company right away in the event that you discover any of the information provided is not correct or complete. Be sure to review the questions you asked and your answers in order for you spot any mistakes before it’s too to late!
The risk of not living out a “Term” Life Insurance Policy
If you’re covered by the term insurance for life, it may possibly outlive the policy’s duration which means there will there would be no death benefit payment.
If you need a greater amount of coverage, your insurer might permit you to renew the policy (at an increase in price) at the expiration date of the policy. You might also be able to transform a term life policy to a life insurance policy however there is a for doing it. Be sure to know the policy’s dates and terms should you be interested in changing it.
Suicide by Death
Life insurance policies typically include suicide clauses that typically lasts anywhere between twelve and twenty-four months dependent on the insurance company. If a suicide happens within this period the insurer generally won’t make an award (please go through for the Key Features Document of your selected insurer for more information regarding this).
Making an Life Insurance Claim
For a smooth claim process, you must inform your family members that you have an insurance policy for life and where you can find it in the event of a claim. It’s best to save the policy alongside other papers that your beneficiaries might require and to look for when preparing your estate. Being organized can go a long way.
Being in the Know
It’s important to know the differences between two types of life insurance. These are “term” life insurance and “whole-of-life” insurance.
Life insurance policies referred to as ‘Term’ are valid for a specific duration (known as the “term” of the policy) such as. 10, 15, or 25 years. However, they only payouts are made if you were to die within the time frame that the insurance policy. There’s no lump sum that you can pay at the expiration of the policy.
Whole-of-life insurance policies pay out no matter your death date, as long as you are in compliance with the premiums.
Of course they are more costly than term insurance plans because so long as you continue paying your premiums, the insurance company will have to pay, while you could outlive your life insurance plan.
TIP A: Whole-of life insurance is called life assurance by a number of insurers.
One of the major advantages of whole-of-life insurance is the ability to assist your family members with the costs associated with inheritance tax. It could also be appealing for you in the event that you’re aiming to leave a certain type of inheritance to your loved ones or aid in the funeral expenses.