4 Common Reasons Why Life Insurance Claims Are Denied

​When you get a life insurance policy, prepare to encounter the possibility of rejection if you file your claim. That's why it's essential for you to know what makes the insurer deny claims. Insurers examine police terms and assess your situation very carefully before they decide to pay claims. Never give your insurers an excuse or a chance to reject your claim. Here are four things that lead to denial of life insurance claims.

The Death Happened Within the Contestability Period
Generally, a policy has a contestability period which can remain in effect for the next two years after you bought your insurance policy. If your death happens during this period, your insurer will investigate the truthfulness of the information you wrote on your application for life insurance. If you lied about your information in any small way, your insurer might disapprove of your claim. 

The Policy Doesn’t Cover the Specific Type of Death
In some cases, the type of death matters. For example, if the insured died in an accident while engaging in a dangerous hobby like skydiving, the insurer usually refuses to pay the claim. Another exclusion is dying in war. However, many insurers only have one exclusion – death by suicide. Thus, you have to make it clear with your insurer about this matter beforehand. 

You Didn’t Disclose Correct or Relevant Personal Information 
This happens when you fail to disclose things like you were once convicted of driving under the influence of alcohol. Also, you did not mention certain hospital records that you've had before. If you applied for coverage, but you lied in answering some questions, then your insurer might deny your claim or perhaps reducing your benefit.

You Didn’t Keep Up With Policy Premiums
If you missed payments of your premiums, it could result in policy cancellations. Although some companies contact you about the matter and give you a grace period of at least 30 days before you could settle your missed payments, some companies may not contact you at all. That’s why it is wise to have your premium payments automatically deducted from a checking account if possible. If you don’t pay regularly, your overdue payments might eat up your total policy value.

Some Final Words
In case of denial of an insurance claim, the first thing you have to do is contact the insurer personally. Ask for the appeals process and follow the process. At that point, you can show your insurer why their decision was incorrect. You can also always ask for legal counsel when it comes to this matter so that you can better argue your case.

At Rick Case Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (405) 722-5556 or Click Here to request a free quote.