Did your loved on forget or just didn’t think it germane to cite a hobby or two that features an element of risk (skydiving or bull riding, for example) when applying for life insurance? Perhaps they missed a premium payment or two.
Could any of these things turn out to be more serious than you ever imagined they could be?
To be more specific: Could an insurer point to any of them after your loved one’s death and argue that it has no legal duty to contractually perform on their policy by claiming a misrepresentation on application or some other irregularity?
The answer is a decided … maybe.
In fact, insurance companies dive deeply into policy language and look for ammunition to not pay out on life insurance claims. Even though a recent Money article stresses that denial issues in only about half of one percent of all claims, that amounts to thousands of claim contests in the aggregate.
What can concerned loved ones – beneficiaries most of all, obviously – do in the event of a life insurance claim denial?
Many affected parties initially reach out to the insurer itself or to their insurance agent. Some may also seek help from a state’s Insurance Commissioner.
“If you’re still striking out,” notes Money, “consider hiring an attorney.” Proven legal counsel will know how to smartly and aggressively appeal a life insurance denial.