Colorado residents may find themselves in a battle with insurance companies when trying to file life insurance claims. The reality is that receiving a denied claim from an insurance company during a time when you are already grieving for the loss of a loved one only makes the situation worse. With this point under consideration, it is important to have a strong understanding of why claims might be denied. It is also critical to understand what is meant by the term “contestability period” as it relates to life insurance claims.
Understanding why claims might be contested or denied
There are several primary reasons why life insurance claims might be denied. The most common ones include a failure to disclose all personal information that could be relevant to the policy, a type of death that the policy did not cover and unpaid policy premiums. Another common reason why a claim might be denied is if it fell within the policy’s contestability period. This is a term relevant to policyholders and their beneficiaries.
Understanding the contestability period
It is common for life insurance claims to be denied when the death in question falls during the contestability period. This period generally covers the first two to three years from the effective date of a life insurance policy. Insurance companies can attempt to contest the circumstances of death if they are deemed to be outside of what the policy covers. If you find yourself in a situation where you feel that you have been wrongfully denied the receipt of benefits from a life insurance claim, your best option may be to seek legal counsel through an attorney to ensure that your interests are being protected.
Understanding the specifics of why life insurance claims get denied can help you in your efforts to fight back and receive the payout of benefits that you are due. If your claim has been denied, it is in your best interest to seek out an attorney who is experienced in this area of law.