There is nothing more devastating than losing a loved one. Having your life insurance claim denied after such a loss can be yet another unimaginable blow. Shouldn’t your insurance company help in such a time of need? Could they really look for reasons not to pay your family the money it deserves?
Unfortunately, insurance companies have a variety of reasons to deny life insurance claims – some are valid and some are not. Here are a few of the most common:
- The claimant did not disclose information in your application. Perhaps the claimant did not tell the insurance company about a preexisting condition, or perhaps he did not fully explain an issue with his health (such as smoking history).
- The claimant lied on his application. In some cases, claimants simply forget to include information in their application. In other cases, there may be knowing misrepresentation, lying, and fraud. While misrepresenting your health can secure a lower life insurance premium, it can mean losing out on any sort of payment in the event of your death.
- The circumstances of the claimant’s death. Many life insurance policies have causes that exclude benefits in cases where the death involved: drugs or alcohol, suicide, terrorism, or criminal activity.
- The death took place before or after the policy was effective. This could happen if the claimant died during the application process or if the claimant died after the employment associated with the policy was terminated.
- The claimant had not made premium payments. For the contract to remain valid, payments must be made to the insurance company regularly.
To understand whether your life insurance claim is valid, carefully read your policy and consider speaking to our Texas life insurance claim lawyers about your case. To learn more, call Voss Law Firm & 888-614-7730. Connect with Voss Law Firm on Google+.