Life insurance is a valuable thing to leave your beneficiaries. But no one wants there to be a problem after their departure. If you want to be sure your wishes are fulfilled and your life insurance beneficiaries get the benefits of the policy you purchased, avoid these five common reasons why insurers deny life insurance claims.
Why Insurers Deny Life Insurance Claims
1. Non-disclosure or Misrepresentation
Most life insurance policies ask about health conditions, smoking and drinking habits, risky lifestyle choices, and other things that can influence their decision. If an applicant misrepresents the facts or doesn’t truthfully disclose the information, this may lead to a denial of the claim.
2. Exclusions in the Policy
Life insurance policies almost always exclude certain events, including activities such as extreme sports or circumstances that are not covered. For help determining exactly what exclusions are in a life insurance policy, consult with a representative at STARS Insurance serving Deerfield, IL.
3. Restricted Location
Sometimes a life insurance claim may be denied of the policyholder was intentionally in a restricted location. This may include places where a travel advisory was in place or in a situation where the policyholder intentionally put themselves in harm’s way, such as in a tornado.
4. Inaccurate Beneficiary Information
Life insurance companies do their utmost to pay out legal claims. However, the policyholder must provide accurate beneficiary information in order to do so. Outdated information or inaccurate information can cause unnecessary delays in paying out a claim.
5. Illegal Activities
Some life insurance policies include clauses where illegal activities are not covered. So if a policyholder passed away while engaging in an illegal activity, the claim could possibly be denied.
Call Today To Discuss Your Options
For help with all of your life insurance needs, including how to ensure your claim is paid, contact your representative at STARS Insurance serving Deerfield, IL.