Don't Let Your Life Insurance Claim be Denied
Most people are confused when the topic is life insurance even when in most cases people pay for insurance premiums pretty much their whole lives. One can get a lot of benefits by simply understanding the ins and outs of life insurance policies should something unfortunate happens to you or your family member.
There are different kinds of life insurance. There's such a thing called variable life insurance, whole life insurance and universal insurance. They have different names but they all have one thing in common and that is they are known to be cash value life insurance policies. All life insurance pretty much work the same way where a part of your premium is used as an investment and the other covers the insurance itself. Normally, your taxes on the investment portion will be deferred until the time you collect your proceeds.
Your family could find themselves in a grave financial risk if you happen to die untimely especially if you're married and have dependent children. If that's a problem, what if you had mortgage and other debts? In most cases, the surviving spouse will not be able to handle everything when the walls start coming down. Having life insurance is your way to protect your family and against the problems they could face should something happens to you. You should also understand more about life insurance claim denial.
Most people think that collecting the life insurance upon our death is easy for the beneficiary but in most cases, it's not. Here's the thing about life insurance companies. Before they let go of their money, they carefully review each and every single claim. Sometimes other life insurance claims are denied. Aside from the policy they have against fraud on the policy holder's part, one of the most common reasons for life insurance companies to deny some of claims is because there was a misrepresentation of material on the application of the life insurance. That misrepresentation could happen on different occasions such as the original application or in the amendment of the application. Watch a video about life insurance here at https://www.youtube.com/watch?v=67iiYbGJoVk.
There is enough ground to deny a claim if there is a material representation. Generally, a material misrepresentation is something that if fully and truthfully disclosed could have led the life insurance company to refuse the insurance of an individual. Material misrepresentation could be just about everything in a person's life like his hobbies, income, age health records and others.
It's not easy to recover money from an insurance company when your life insurance claim is denied. Most insurance claims are paid with no problems on the insurer's part but in some cases, insurance claims are delayed and even denied. The claims that commonly cause suspicion are those that were filed within the first couple of years. Insurance companies can deny any claim or any application it they happen to find some material misrepresentation in many states.
Life insurance companies like most insurance companies are also regulated by the state. You should contact the department of insurance in your state and get yourself life insurance lawyers who are experienced in dealing with similar cases if you have questions about your claim.