What Are The Conditions When You Find Your Life Insurance Coverage Denied?
Why do you take out an insurance policy? In most cases it is to buy the peace of mind that comes with knowing your near and dear ones would be safe and financially comfortable in case of your death or any other serious mishap. In order to serve this purpose you need to know what could be the clauses that would have the claim for life insurance coverage denied.
Some Major Reasons Why You Would Get The Life Insurance Coverage Denied
Beware that different states have different policies and laws that govern the people as well as insurance providers. Make a list with only those reasons why the company would have the life insurance coverage denied and check these one by one vis-à-vis your own case.
The first and the most common reason for the life insurance coverage denied clause to come into effect is if you die before two years are completed from the death of buying the policy. This would have been mentioned in small print somewhere so you would have nothing to blame but your bad luck if something like this happens.
The next reason why you would get life insurance coverage denied is called as 'material representation'. This would include any type of inaccuracies on the declaration regarding any pre-existing disease and/ or the doctors you have visited in the 5-10 years in the past, etc.
Then they can have the life insurance coverage denied clause where it would show that you had hidden certain things that had the company known about, it would not have issued the policy. Ensure that you are doing everything right - or you might never have the opportunity to right it (after your death).
Knowing The Pros And Cons Always Helps
Ensure you understand very well what the life insurance would give your nominee or nominees and let them know about the exact amount you have insured for them. In order to be sure that there is no untoward problem with the insurance policy, you would just need to have a lawyer put into contact with your nominees, just in case the insurance company feels like going back on their words.
Lastly, ensure that you too go through the insurance policy's clauses one by one with a very fine toothed comb so you would identify any detrimental section and find a way around it. Be very careful about what can cheat your dependents of the money, in case anything happens to you.
