When you purchase a life insurance policy, there are chances that your beneficiary claim will be denied. It is essential for you to learn why and how this can happen. Insurers and insurance companies examine the policy terms carefully before they pay the claims to ensure the policyholders have fulfilled their obligations.
If a carrier decides that you violated any of the policy terms, it might refund your premiums to the estate and pay your beneficiaries nothing at all. This is why you should give no chance to insurers to reject your claim. You can take the help of an insurance claim attorney if your claim was denied. In this blog, you will learn about some reasons behind the denial of your life insurance claims.
Reasons why Life Insurance Claims Are Denied
Some of the reasons why your life insurance claim might be denied are as follows:
The death occurred during the contestability period.
Life insurance policies have contestability periods that remain in effect for two years after you buy them. If you die within this period that lasts around two years, the insurer will try to find out whether there was proper information on your life insurance option.
If you lied about something on the application, the company will refuse to pay the death benefit even if the cause of death had nothing to do with that error or misinterpretation. For example, if you did not say something true about your medical condition but died in a car accident that was not related to your condition, the death benefit will still be denied. But normal omissions may not be a cause of denial.
The cause of death was not covered in your policy
Life insurers use different exclusions that focus on death type as per the words of experts. For instance, if insurers die while being part of a risky hobby, the insurers do not want to pay the claim. Death in war is also a common exclusion.
But today, all these things are not considered true, life insurance policy exclusion that is mostly used today is death via suicide. But the exclusion can be waived, if the death happened after the contestability period. Many people opt for an insurance claim attorney in such cases
You did not disclose specific personal information
One of the common reasons why insurers deny life benefits is that you did not disclose information that was required to properly measure the risk of the policy payout. There will be a ground for them to deny your claim if you applied for insurance coverage but did not answer the questions honestly. But you need to know that writing an improper address or a license number is not grounds for denial.
Contact Life Insurance Law Firm
If you think that your life insurance benefits were denied due to unfair reasons, you can opt to hire an insurance claim attorney. You can contact Life Insurance Law Firm for the best lawyers who can help fight for your life insurance claims and ensure that you eventually get the benefits.