Why Life Insurance Claims are Denied and What to Do About It
It sometimes happens to people claiming the benefits of a life insurance policy to be denied their claim. In this case the proper action to do is to first find out why your claim was denied and then plan out what to do in order to resolve it.
This is a difficult situation but if it is handled well, the benefits may still be given to the claimant. To help you with this issue, it is beneficial to hire a good lawyer to find out the reasons for the denial and assist you in getting what is rightfully yours in case the life insurance claim denial is wrong. One of the most common reasons why a claim is denied is an alleged misinformation by the insured at the time of the application. This means that they accuse the applicant of withholding vital information that may have led to a denial of an insurance policy. Any information or omission that may have influenced the outcome of the insurance application is considered misinformation or misstatement. For them this means that there was deliberate intent to mislead the company into issuing an insurance policy.
Death occurring during the life insurance contestability period is another possible reason for a claim to be denied. This period covers the first two years of the policy and within this period, if the company finds any misinformation especially about the insured's real health condition at the time of the application, it can cancel the policy and return the premium. Check out a video about insurance here at https://www.youtube.com/watch?v=4CR1KwIwawg.
When death occurs right after the policy was purchased is another scenario for claims denial. This does happen in real life, yet most insurance companies will take a second look for possible fraud and foul play.
One other reason cited for claims denial is when the cause of death is not covered by the policy. For instance, some policies do not cover accidental deaths but others do. Suicide is definitely not covered, and also if a beneficiary has caused the death of the insured. It is wise to make sure, when purchasing a life insurance plan to know what the death circumstances covered by the policy are, so, if necessary, you can make adjustments.
The life insurance company is responsible to provide claimants notice and justification for the denial. Claims cannot be denied for an arbitrary reason nor can an insurance company approach a claim with an intent to deny it. The insurance company must be fair when reviewing the claims made by the beneficiaries.
A life insurance lawyer can help you sort things out if you feel that your claims are unfairly denied. An experienced attorney will know what to advise you and how to proceed after a denial. This can involve filing a lawsuit in an effort to get the money you deserve.
This is a difficult situation but if it is handled well, the benefits may still be given to the claimant. To help you with this issue, it is beneficial to hire a good lawyer to find out the reasons for the denial and assist you in getting what is rightfully yours in case the life insurance claim denial is wrong. One of the most common reasons why a claim is denied is an alleged misinformation by the insured at the time of the application. This means that they accuse the applicant of withholding vital information that may have led to a denial of an insurance policy. Any information or omission that may have influenced the outcome of the insurance application is considered misinformation or misstatement. For them this means that there was deliberate intent to mislead the company into issuing an insurance policy.
Death occurring during the life insurance contestability period is another possible reason for a claim to be denied. This period covers the first two years of the policy and within this period, if the company finds any misinformation especially about the insured's real health condition at the time of the application, it can cancel the policy and return the premium. Check out a video about insurance here at https://www.youtube.com/watch?v=4CR1KwIwawg.
When death occurs right after the policy was purchased is another scenario for claims denial. This does happen in real life, yet most insurance companies will take a second look for possible fraud and foul play.
One other reason cited for claims denial is when the cause of death is not covered by the policy. For instance, some policies do not cover accidental deaths but others do. Suicide is definitely not covered, and also if a beneficiary has caused the death of the insured. It is wise to make sure, when purchasing a life insurance plan to know what the death circumstances covered by the policy are, so, if necessary, you can make adjustments.
The life insurance company is responsible to provide claimants notice and justification for the denial. Claims cannot be denied for an arbitrary reason nor can an insurance company approach a claim with an intent to deny it. The insurance company must be fair when reviewing the claims made by the beneficiaries.
A life insurance lawyer can help you sort things out if you feel that your claims are unfairly denied. An experienced attorney will know what to advise you and how to proceed after a denial. This can involve filing a lawsuit in an effort to get the money you deserve.