Life insurance companies will typically try to deny a claim if they feel that some facts were not disclosed at the time when the life insurance was arranged. Such problems may relate to medical history or lifestyle factors such as smoking, drinking, or weight. Unfortunately a lot of this information that you provide when you make your original application is either not checked at all or is only checked very briefly. However when it comes to paying out a claim the facts will be investigated in great detail!
Make Sure Your Application is Truthful and Complete
If you are just reading out of interest (rather than because you have a dispute on your hands) then it might be worth re-visiting any life insurance policies that you have. If you feel there are any omissions or errors in your application you should deal with them now by contacting your insurance company. Much better to do this and suffer a rise in your premium (or reduction in the amount of cover) than to die and leave your relatives with a policy that the insurance company will not pay out.
If You Are in a Dispute, What Should You Do
Normally I am in favor of people doing as much as they can without taking on expensive legal advice. However this is one example where it is absolutely essential to engage the service of a skilled and experienced legal professional. Make sure that they specialize in life insurance cases and that they can provide references. The attorney will be able to advise you on whether the insurance company have a case and suggest any additional evidence you might need to provide. They will also know, based on their case histories, whether an out of court settlement is possible. As a last resort they will be able to advise on whether you have a case for taking the insurance company to court.
Tags: insurance disputes, Life Insurance
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