People acquire life insurance policy to secure the future of their dependents and
guarantee that their family will enjoy the same way of life and will not confront any financial dilemma even if they die. Conversely, there are instances when purchasing a policy does not assure any settlement to the policy holder's family or dependents. Purchasers should pay heed to the fact that many insurance companies coverage even after the policy holder passes away. Underneath are normal explanations why some insurance claims are rejected:
Incomplete Disclosure Of Information
Claim denial typically comes into view because the person who applied for life insurance coverage did not reveal vital information during the application process. Normally, applicants are demanded to fill out a medical form and undertake a comprehensive medical examination. The insurer can rebuff the claim for benefits if the policy holder fails to disclose a serious health problem that appeared in his medical examination. To guarantee that your recipients will actually obtain the benefits from your policy it is indispensable that you reveal all the required information and complete the application form.
Inadequate Time
Another reason why some life insurance carriers rebuff a claim is the insufficiency of time between the periods the policy was released and when the policy owner died. Most policies require a short span of time that must pass before the beneficiary could enjoy the benefits of purchasing a policy. On the contrary, there are policies that do not specify accurate number days or months that must go by, but they can still decline the claim if they believe that the period elapsed is still not enough for an insurance claim.
Suspicious Cause Of Death Of The Policy Holder
An insurer can refuse a payout if the deem that there had been a foul play associated to the death of the insured person. If the insurers are able to prove that the policy holder's death is a case of suicide, it will not pay the claim. The insurance company will perform a painstaking investigation into the death and make a appropriate decision accordingly.
Premiums
Make certain you maintain your premiums paid up to guarantee that your heirs will be able to accumulate a payment when you die. Not paying your premiums religiously causes the policy to expire and can convince the life insurance company to refute your recipient's claims. Although there is a grace period before the termination of your policy, the insurer can come to a decision not to award the benefits if you die untimely and premiums are not paid on time.