Insurance Life Quote Term Whole Information –Why an Insurer Disclaims Life Insurance Coverage:
Warning; his article is not likely to give warm and fuzzy feelings. Any insurance life quote term whole policy or other life insurance policy will apply regarding this article. Each state laws may differ slightly from one to the next;
An insurer or insurance company has the right to disclaim insurance coverage after application for a number of reasons.
Disclaiming a life insurance policy can result from discrepancies (differences) between the life insurance application, and facts about a life applicant. These are not limited to falsehoods, lies or differences from what are true and accurate information regarding the insured person/s.
This is the primary reason that it is necessary to be absolutely honest during the application process.
What this means is that if there are any inconsistencies or false information on the application the life insurance claim could be denied.
The issue that affects consumers most negatively is when an insurance company will disclaim a policy during the claim process after the insured’s death. Often when an insured person dies the insurance company will immediately do an investigation to prove the benefit un-payable. This is especially valid if the policy is still in the contestability period. There is any number of reasons that the insurance company can do this successfully.
Here are the most common reasons an insurer disclaims life insurance coverage:
During the contestability period (varies by state and country) an insurance company may contest the payout of the life insurance proceeds. Most common reasons;
• Other Life Insurance Policies
• Employment History
• deviations in Income level
• Tobacco Usage
• Alcohol Usage
• Dangerous Hobbies or Traits
• Misrepresentation of Age
If discrepancies are found that differ from the application this is called a “material misrepresentation”. Any material misrepresentation if substantial, can be grounds for a claim denial.
If during their investigation the company may use any discrepancies from the application -to deny the claim. The contestability period can also be restarted by any changes made to the policy.
If the insured would pass away during this time it would be considered the same as the contestability period, or the same as the original contestability period from application.
Below are events that can trigger the contestability period.
1. The original Application
2. Making a Policy amendment
3. Application for late enrollment (usually on group life insurance policies)
4. Application for renewal (renewing an existing policy, usually term life products)
5. Changes to the policy such as additions or deletions of beneficiaries.
If the insured person dies while still within the contestability period an insurance company will usually begin the investigation to eventually allow them to deny coverage.
If you have been denied a claim as the loved one of a life insurance policy you will probably need to consult an attorney that is appropriate to fight this in court. Usually this will result in a settlement if the claim is deemed payable by the courts.
Sometimes, these matters are settled outside of court by the company paying a sum acceptable between you, your attorney and the insurance company.
You will need the experience of an attorney versed in this litigation process. I wouldn’t recommend trying to handle this on your own if you claim is denied.
Summary Why an Insurer Disclaims Life Insurance Coverage – insurance life Quote Term Whole Policy Information :
I agree that this is a bit sad; insurance companies looking for a reason to not pay what is rightfully owed to the beneficiaries. But this is just part of the insurance business.
Hopefully, your claim, should you have to file one; is a simple and pain free process. Many of them are.
The problem -as you may have guessed; is that often the loved ones left behind by the beneficiary, need the funds from the life insurance policy for living expenses. Every day that goes by without the life insurance funds can be burdensome.
Be vigilant in getting what is rightfully yours and do not take a denied claim as the final answer. Nearly all insurance life quote term whole policies offered by insurance companies will be handled in this way.
Consult an attorney for any denied life insurance claims.
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