With the growing concern about coronavirus, also known as COVID-19, consumers may have questions regarding their life insurance, especially when it comes to purchasing a new policy or making a claim. Below, we answer a few common questions.
My life insurance was purchased less than two years ago. Can the insurance company deny my loved ones’ claim if I pass away before the two-year mark?
When you purchase a life insurance policy, most insurance companies enforce a “contestability period” in the first two years of coverage. If you pass away within this two-year period, the company can review your application to look for any inaccurate information. After the two-year mark, they can no longer do this.
The insurer may try to deny your claim during the contestability period if even the smallest detail is inaccurate, such as your height or weight. However, as long as these details have no bearing on the circumstances of your death, your loved ones can work with an experienced attorney to file an appeal and still seek benefits. Hopefully this issue never arises for them, but all is not lost if it does.
I’m having trouble making ends meet, and I’m not sure I’ll be able to pay my life insurance premium this month. If my payments lapse and I pass away, will my family have trouble receiving benefits from a life insurance claim?
Failure to pay premiums does not always mean a beneficiary cannot collect life insurance benefits. When payments are missed, insurance companies must follow certain laws and procedures. Failure to do so might mean the insured was not responsible for missing payments. It might not stop a beneficiary from receiving a denial for failure to pay premiums, however.
At this time, many insurance companies have notified beneficiaries that they are willing to work with them should they face financial hardship amid workplace closures due to coronavirus. If you are concerned about paying premiums, it might be helpful to contact your insurer directly. We also welcome you to contact the Life Insurance Lawyers for advice.
Does my life insurance policy cover death from COVID-19?
Your policy should cover death by illness. However, life Insurance providers still deny many claims for a variety of reasons. Some denials are based on material misrepresentation, which means that a policyholder provided false information. Sometimes, an insurer’s reason for denying a claim is baseless. There is really no way to safeguard your family from facing a denial besides ensuring that all information about you is complete and correct. Should the insurer try to hang their hat on ambiguous policy language or untrue material misrepresentation, our attorneys can help with filing an appeal to still seek benefits.
Life Insurance Law is a nationwide network of attorneys who recover denied or delayed life insurance claims for beneficiaries. Feel free to contact our team if you have any questions about a claim or your policy during this unprecedented time.
