The main reason why people buy life insurance is to enable their dependents enjoy the same lifestyle as they do now and that they (dependents) will not have to face any kind of financial difficult if the policy holder passes on. Unfortunately, there are instances where buying life insurance does not guarantee any kind of benefits to the dependents and family of the policy holder. There are some cases where life insurance claim are denied. Outlined below are the reasons for life insurance claim denials.
One of the main reasons why your beneficiaries can be denied life insurance is partial disclosure. In most cases, claim denial comes about because the person who applied for the policy failed to provide certain essential information at the time of applying for the same. Usually, applicants are asked to fill out a comprehensive medical questionnaire, as well as undergo a medical examination. If the applicant fails to provide as detailed information as possible about their health, there are chances that the claim could be denied.
Another reason why life insurance can be denied is when there is insufficient time between the period the policy was issued and the time the owner passed away. You must then hire a good life insurance lawyer. Most insurance plans require that a certain period of time must pass before he or she can reap the benefits. While some policies do not indicate the number of days and months that must elapse, they can still reject the claim if they feel that the period elapsed is still inadequate for an insurance claim to be paid.
Dubious death circumstances are another reason why a life insurance claim can be denied by the insurance company. If the insurer believes that there are disputable circumstances linked to the death of the policy-holder. For example, if the insurer believes that the death of the policy holder was as a result of suicide, it may fail to pay the claim. On the same note, if they believe the recipient killed the policy holder to get the compensation, the insurance company may not pay the beneficiary. Visit http://www.ehow.com/ehow_money-life-insurance/ for more facts about life insurance.
Besides the aforementioned, the insurance claim may be denied if the policy-holder failed to make premium payments as required. If you fail to pay your premiums regularly, this may cause the policy to lapse, forcing the insurance company to refute paying any benefit to the beneficiaries. While there should be a grace period to the termination of the policy, the insurance company may make a decision not to grant the benefits if you die while you have not been paying premiums on time. To get more facts, read about life insurance claim denial.