There aren’t many instances in life insurance firms refusing the life insurance claim, it’s worthwhile to be aware of what might make a claim disputed. In this article , we’ve listed the most common reasons that claims can, unfortunately be rejected.
Not disclosing medical conditions or Lifestyle Information
If you decide to purchase life insurance you must provide medical conditions as well as other risk factors that could be a factor. If you don’t provide exact information in the application process, any claim you make on your life insurance policy might be denied in the future.
In the event of a failure to disclose certain details when applying for an insurance policy for life could be considered to be a false representation. It could be a incorrect or inaccurate statement(s) or concealment of details. In certain instances an error could mean the policy was issued that could have been rejected otherwise.
Most policies contain the clause of contestability (usually between 2 and 3 years) where the insurance company can need additional information on the cause of death. This could be in the form of medical or post-mortem records that allow the insurance company to determine if any information was withheld in the application procedure. If your insurer uncovers an indication of misrepresentation, your policy may be canceled and the beneficiary might not be eligible for an inheritance benefit in the event of your death. Be aware there are options to check the information you supply in an application.
For help with a denied life insurance claim click here…
What information do insurance companies require to provide in a life insurance application?
Remember: You must receive an original copy of every application in order to obtain life insurance from the company (or the providers). It’s crucial to go over your application’s details and then contact the insurer right away when you find that any information that is inaccurate or insufficient. Make sure to check your questions and answers to your application to help you spot any mistakes before it’s too for you!
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In the event of a term life insurance policy being outlived, it is a Insurance Policy
If you’re covered by an insurance policy that is term, then you may be able to outlive the term of the policy which means there will there would be no death benefit payment.
If you require a longer period of coverage and the insurance company may permit you to renew the policy (at an increase in price) after you reach the end of your term. It’s also possible to change a term life insurance policy into a whole-of-life insurance policy however there is a period to do this. You should be aware of the policy’s dates and terms when you’re considering changing it.
Suicide by Death
Life insurance policies generally include the’suicide clause’. It generally lasts up to 24 months dependent on the insurance company. If a suicide happens within this period the insurer usually won’t pay any payout (please go through your Key Features Document of your preferred insurer for further details 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 is generally best to keep the policy alongside other papers that your beneficiaries might require and to look for when you manage your estate. A well-organized estate is a big help.
Being in the Know
It is important to understand the distinctions between two types of life insurance. These are the ‘term’ type of life insurance as well as “whole-of-life” insurance.
“Term” life insurance policies are valid for a specific duration (known as the “term” of your policy) such as. 10, 15, or 25 years. However, they only payouts are made if you were to pass away within the time frame that the insurance policy. There’s no lump sum that you can pay at the expiration of the policy.
Of course they are more costly than traditional insurance policies because the length of time 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 known as life insurance by a variety of insurance companies.
One of the primary advantages of whole-of-life insurance is that it will assist your family members with the costs that are related to inheritance taxes. It could also be appealing for you in the event that you’re planning to leave an inheritance to your loved ones or assist with funeral expenses.