6 Reasons Your Life Insurance Benefit May Be Denied

Although obtaining a life insurance policy is the most loving act you can do for your family, you should be aware that there are certain situations where a carrier MAY NOT pay out a death benefit.

1) You pass away during the contestability period- If the insured dies within the first two years that the policy is in effect, the insurance carrier has the right to do an investigation. They are, in other words, contesting your case. This means they are looking at your medical records and other information you provided on your application. If it is found that you failed to provide pertinent information, or lied about certain activities you are involved in, you can be denied EVEN IF you died from a cause that had nothing to do with the misrepresentation. For example, if you failed to be truthful about cigarette use, but you die in a car accident, you can still be denied.

2) Exclusions in your policy- most policies have several instances where they will not pay out a benefit. Suicide is often included as well as death due to drinking and drug use. 

3) Homicide- If the beneficiary is suspected of murdering the policyholder, the benefit would be denied. Also, if the policyholder was murdered while participating in an illegal activity, the benefit may be denied.

4) Accident- If you died in a motor vehicle accident and were not wearing a seat belt, your death benefit may be denied.

If you were under the influence of alcohol or drugs your death benefit will most likely be denied.

5) Dangerous activities- on the insurance application, you will be asked if you participate in any dangerous hobbies. Not being truthful about these hobbies could be reason for denial of your death benefits if you were killed while participating in any of those activities. These could include bungee jumping, skydiving, race car driving and other dangerous activities.

6) You have unpaid premiums -If you don't keep up on your monthly premiums, you may not have insurance anymore.

It is important to read your policy when you get it so that you are aware of anything that could prevent your loved one from collecting on your benefit in the event of your death.

If you don't have Life Insurance, it is important to get it today!

Contact me to set up a free consultation to go over your options. 

Carolee Hollenback

(315) 200-4326

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Looking for a professional career that you can do from anywhere?

Call me today or join my Facebook group Business Information page here 

*We write policies for American citizens in every US state*


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