People in Oklahoma buy insurance for various purposes. They may purchase insurance for their vehicles, houses, medical needs and even insurance on their lives. No one can predict the future and insurance can ensure that people will be able to pay for emergencies and replace items if they are lost or destroyed. Life insurance is unique though because you cannot replace a life. It is designed to ensure one’s family is taken care of after they pass away.
While people are living they are earning money to provide for their family. Over time they can earn significant amounts of money, but much of it is also spent over the years as they must pay for their families lives. If they are gone, they cannot provide any longer and will need the life insurance proceeds to be spread out over time to ease their families’ financial burdens. That is why it can be very devastating if the life insurance claim is denied.
Common reasons for the denial of a life insurance claim
There are many reasons why life insurance claims may be denied, but some are more common than others. Some of the common causes are:
- Death occurred during a contestability period – There is generally a two-year period after a life insurance policy is purchased when the insurance company can determine whether the information on the policy was correct. If the incorrect information was used on the application the claim may be denied.
- The type of death was not covered by the policy – Some policies may exclude suicide or potentially death while people are engaged in very dangerous activities.
- Failure to disclose certain information – If people fail to disclose a medical condition or potentially convictions for dangerous activities, the claim could be denied.
- Failure to pay the premiums – Life insurance policies require monthly premiums like other insurance policies. Like other insurance policies if those premiums are not paid the policy will expire and claims will be denied.
People hope that they will never have to use their insurance policy, but if tragically their family needs to use it, they would hope that the claim would not be denied. If the claim is denied, the family may still have recourse. Contesting a denied claim can be a complicated process though. Experienced attorneys understand how insurance companies process claims and the potential appeals to denials. Consulting with one may be very beneficial.