Many adults living in Colorado like knowing that life insurance provides them with certain protections. Unfortunately, not everyone who needs it can qualify for it. Sometimes, insurance companies will deny claims. To learn more about why this happens, here are three reasons why life insurance claims get denied.
Outliving your policy
A claim denial can occur if someone outlives the term of their policy. If this happens, you won’t be able to receive a death benefit payout. It’s worth asking your insurance provider if you convert your term policy into permanent life insurance.
Not paying your premiums
It’s also possible to get life insurance claims denied because you’re behind on your payments. In some cases, it’s possible to resolve this problem by paying back what you owe. However, you’ll need to find out your provider’s grace period for late payments. Some insurance providers might reinstate your lapsed insurance policy after receiving the money you owe them plus interest.
Failing to disclose important information
Before you can receive life insurance, you’ll often get asked lots of questions about your life. Insurance companies ask these questions to assess their risk of insuring someone. Whether it was intentional or not, a life insurance company can deny your claim if they learn about risky behaviors or situations you never mentioned. You could receive a denial based on leaving out risk factors relating to your medical history, risky hobbies, and dangerous occupations.
Receiving a denial for your life insurance claim can feel stressful and overwhelming. If you need help with rejected life insurance claims, it might be worthwhile to contact an attorney. An attorney can learn why your claim got denied and assist you with appealing the decision.