Most life insurance claim denials occur because of some type of alleged material misrepresentation on the part of the policyholder. A material misrepresentation is when the policyholder misstated or omitted important facts when applying for their life insurance policy.
Below are a few examples of material misrepresentation and other causes of life insurance claim denials:
Lifestyle Omission and Misstatements
If a policyholder omits the fact that they are an avid photographer, this type of omission won’t impact their beneficiaries. However, if the policyholder fails to mention that they are a smoker, heavy drinker, drug addict or have an occupation which is unusually risky, the life insurance clam could be denied after their death. Because risk factors will impact whether or not a policyholder is sold life insurance and at what rate that insurance is sold, the omission of certain risk factors could be used as a justification to deny a life insurance claim.
Pre-Existing Conditions Omissions and Misstatements
If a policyholder failed to disclose certain pre-existing conditions before buying their life insurance policy, beneficiaries could receive a life insurance claim denial. Pre-existing conditions such as cancer, HIV, diabetes and heart disease are huge factors in determining whether or not to sell a life insurance policy to an individual and at what rate. Some life insurance policies exclude individuals who’ve had recent cancer battles or who are diagnosed with some other serious illness. A life insurance claim denial is probably eminent if the policyholder died of a condition which may have existed (but they failed to disclose) before they purchased their policy.
Reckless Behavior Of Policyholder
Finally, while this does not fall under the auspices of material misrepresentation, some life insurance policies deny a life insurance claim if the policyholder was engaged in reckless behavior when they died. For example, if the policyholder was engaged in a crime at the time of their death, the beneficiaries might receive a life insurance claim denial.
How We Fight Life Insurance Claim Denials
The unfortunately reality of life insurance is that some companies may illegitimately attempt to deny a life insurance claim. At the end of the day, life insurance companies want to maximize the amount of premiums paid while minimizing the amount of claims. If you’ve been your life insurance claim has been denied, don’t assume that the company has a legitimate reason. Consult with a life insurance attorney who can advise you of your rights. The attorneys at Life Insurance Law can work with beneficiaries to successfully challenge a life insurance claim denial.
Here’s what you can expect from Life Insurance Law:
- Assess your life insurance claim denial and determine if you have a case.
- Advise you on how to avoid invalidating your claim denial case.
- Win you a payout in 30 days or less.
About Us
The life insurance lawyers at Life Insurance Law win justice for individuals and families who face a life insurance claim denial. Understanding that the primary objective of life insurance companies is to deny insurance claims, Life Insurance Law is prepared to utilize all of our knowledge and legal tools to fight and win your case in the most expedient and effective manner possible. We are also committed to winning the largest payout for you and loved ones. If you are experiencing a life insurance claim denial contact us today.
