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 of