What Are the Most Common Reasons Life Insurance Is Denied?
By Space Coast Daily // September 12, 2020
PROTECT YOUR MOST IMPORTANT ASSETS
If you have a family, then you need to make sure that you protect your most important assets.
While many people think about protecting their car in their home from harm, it is also important for everyone to protect their annual income.
This is where life insurance is important.
Life insurance is supposed to make sure that you can provide for your family if you end up dying. What happens if you are not able to go to work and the paychecks stop coming? What is your family going to do? This is where life insurance is important.
At the same time, there are also reasons why life insurance benefits might be denied. When this happens, this can be a shock for the family.
They were depending on that check to help get them through the next few years. If their benefits are denied, this could leave them wondering how they are going to make ends meet.
Therefore, it is important for everyone to understand some of the most common reasons why life insurance benefits might be tonight.
One reason why life insurance might be denied is suicide. Even though most life insurance policies cover suicide, suicide coverage usually doesn’t kick in for a few years.
Therefore, if the policyholder committed suicide right after purchasing the policy, life insurance benefits might be denied.
Another reason why life insurance might be denied involves material misstatement.
These are false statements that were made on a life insurance application.
For example, some people might lie about a history of smoking, important medical information, or chronic medical conditions, some people even lie about their age.
If this is the case, the life insurance company might contest the benefits, preventing them from getting paid out. In addition, another possible reason why life insurance might be denied involves a lapsed policy.
In order to have life insurance, people have to pay their premiums. Those who forget to pay their premiums will end up with a lapsed policy.
The policy lapses before the policyholder dies, then life insurance benefits might not be paid out. People depend on life insurance to provide for their families in the event that they pass away.
When life insurance benefits are not paid out, this can leave families with very few options. Fortunately, one option is to enlist the help of a trained legal professional.
An attorney with experience in this area can help people appeal the refusal of life insurance benefits. With the help of a legal professional, everyone can play themselves in a position to succeed during their appeal.
Not having life insurance benefits can be a huge problem for families. Everyone should make sure the exhaust all of their options.