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Why do insurance companies deny life insurance claims?

On Behalf of | Dec 9, 2022 | Denied Insurance Claims

People in Oklahoma have life insurance policies for the purpose of ensuring that their loved ones have money if they pass away and are no longer able to provide for them. People pay premiums each month while they are living in case they pass away unexpectedly. It is important that the beneficiaries of these policies receive the money that was designated for them as they attempt to move on without the loved one in their lives.
Unfortunately, when the beneficiaries need it most, the insurance companies may deny the life insurance claim. This can be devastating for the beneficiaries of the policy.

Common reasons for denials of life insurance claims

There are many reasons why insurance companies deny life insurance claims, but some of the more common reasons for denials are:

  • Lying on the application—people are asked about the health history on life insurance applications and if people lie about having a certain disease or being a smoker, it could result in a denial of the life insurance claim
  • Not paying the premiums—if people stop paying their premiums at some point in time, the policy could lapse
  • The policy does not have an alternate beneficiary and the primary beneficiary has previously passed away
  • The death of the policy holder was in a manner that was excluded by the policy. This could be death during a high-risk activity or perhaps while committing a crime
  • The beneficiary of the life insurance policy was never updated after a divorce. Many times, ex-spouses are no longer able to be beneficiaries of life insurance policies after a divorce and if the beneficiary was never updated the claim could be denied.

Sometimes, denials of life insurance policies in Oklahoma are legitimate. However, there are other times when insurance companies deny life insurance claims without a valid basis to do so. If the insurance company denies the life insurance claim without a valid reason, the beneficiaries may still be able to receive the benefits they deserve. These can be complicated matters as life insurance policies can be very complicated to understand. Experienced attorneys understand them and may be able to guide one through the process.