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Common reasons for life insurance claim denials

On Behalf of | Dec 19, 2018 | Delayed And Denied Insurance Claims | 0 comments

When you purchase a life insurance policy in Texas, chances are, you do so expecting that it will help your loved ones regain their financial footing after your passing. Similarly, if you are the beneficiary of a particular life insurance policy, you probably expect that you will have a certain amount of money available to you following the loss of your loved one. Attorney Jon Michael Smith recognizes that many life insurance providers deny claims for similar reasons, and we have helped many people facing life insurance claim denials pursue solutions that meet their needs.

According to Nerdwallet, there are numerous reasons your life insurance company may deny your claim, and some are more avoidable than others. It is essential, for example, that the policyholder pay all premiums in a timely manner, because failing to do so can lead to a lapse in coverage. The policyholder must also be truthful when completing the life insurance policy application in the first place, taking care to answer questions about smoking habits, medical history and similar matters honestly. This can prove particularly important if the policyholder dies within two years of purchasing the policy.

The majority of denied life insurance claims fail to receive approval because of such “material misrepresentations,” with about two-thirds of all denied claims falling into this category. Other factors, however, also often come into play.

For example, an insurer will typically deny a life insurance claim if the policyholder commits suicide within two years of purchasing it. Additionally, if a beneficiary named in the policy murders the policyholder, this, too, is grounds for claim denial, as is the death of the policyholder during the act of committing a crime. You can find more about this topic on our webpage.