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Most common reasons why life insurance claims are denied

On Behalf of | Apr 22, 2022 | Denied Insurance Claims

When a life insurance claim is denied, it can be overwhelming for family members during an already difficult time. Unfortunately, denials of life insurance claims are all too common.

Failure to disclose pertinent information

One of the most common reasons for a life insurance claim denial is a failure to disclose a medical condition or other pertinent information.

Here, it’s important to note that the Affordable Care Act gives some insurance protections to people with pre-existing conditions. However, insurers can legally deny claims if their customers gave them misleading information when they applied for insurance coverage in the first place. If an insurance company alleges that the insured made a material misrepresentation that would have resulted in the application for benefits being denied, it may deny the claim.

Some examples include a failure to disclose current physical and mental health conditions, family health history or prescription history. Other examples could include risky hobbies, risky behaviors or a history of dangerous occupations.

Failure to pay premiums

Another circumstance that may lead to a life insurance claim denial is a failure to pay premiums. Life insurance companies also typically deny claims if there is evidence that the deceased died by suicide.

Learn your options

In some circumstances, surviving family members may believe that the life insurance claim was improperly denied. In those situations, a skilled attorney with experience in insurance law can advise them on their rights and options for legal action.