We pay for life insurance to have the peace of mind that our loved ones will be taken care of financially should we unexpectedly pass away. However, in the midst of all the activities that follow a death, a life insurance claim could be denied leading to further headaches and grief.
Three reasons why a life insurance claim might be denied
There are a variety of reasons why a life insurance claim could be denied. One is if you did not inform the insurer of a medical condition when you signed up with the life insurance company. Your eligibility for life insurance can depend in part on your health when you applied for the policy.
You must also disclose other activities that could pose a risk to your well-being, such as risky hobbies like mountain climbing, risky behaviors such as smoking and risky job duties such as being a firefighter.
Another reason why a life insurance claim could be denied is if you failed to pay your life insurance premiums. If you have late payments owed, you may be granted a grace period to come current on what is due. Not paying your dues could cause your life insurance policy to lapse. To overcome that, you will need to pay what you owe plus interest.
A third reason why a life insurance claim could be denied is if you have a term life insurance policy and you live long enough to pass the policy’s term date. To avoid this problem, you may be able to renew your policy before the term is up or opt to sign up for a permanent policy.
An attorney can explain more about denied claims
If you have life insurance, you will want to make sure while you are still alive that your policy will pay out what is owed should the unthinkable happen. If you have further questions about the possibility of a denied life insurance claim, you can bring your concerns up to an attorney who can help explain your rights and options.