6 Reasons Why Your Life Insurance May Not Pay Off
You ever wonder how often life insurance claims get denied, leaving loved one’s hanging out to dry. It’s a devastating thought, but not something you should worry a lot about. Very few life insurance claims are ever denied.
Life Insurance May Not Pay Off
If you end up in a situation that you’re insurance does not pay you, we are here to help. According to the Center for Life Insurance Disputes, there are around $60,000,000 disputes about how people’s life insurance may not pay off. They have been denied by different insurers. It can happen anytime and to anyone, so if you fall for it and become a victim, then you can count on Coach B Life Insurance.
Reasons Life Insurance Won’t Pay Out.
One of the most common mistakes that many insureds make is forgetting to read the fine print before signing. The exclusion written inside the fine print will reveal truths that can lead to circumstances that might stop your insurer from giving the benefits your beneficiary need after you die. Also, getting a life insurance policy guarantees that the beneficiary will get the whole agreed amount. The following are six common reasons why life insurance may not pay off.
All insurance providers do an investigation regarding death before granting any claim. It is a part of the process before they release payouts. They will dig deeper into the cause of your death and compare it to the original document or application form. Once they find out that the cause of your death has something to do with a health condition or accident, they will thoroughly investigate.
So, make sure that you disclose any health condition you have by the time of your application. Also, include any dangerous activities that you are involved in. Dishonesty is a severe crime for insurance providers.
In case an insured commits suicide, then the family will surely not get anything from the company. There is a suicide clause within the fine print about “death caused by suicide.” Some insurers may indicate a specific timeframe wherein an insured should not commit suicide usually 2 years but read the fine print. The situation will only give the beneficiary the premium paid without the death benefit. Also, the suicide clause is known as an incontestability clause.
Also, the investigation process takes time, depending on the states. However, most states have a period of a year or two. It will start right after the policy takes effect. This clause serves as a safety net for the insurers to protect the company from fraud. Some people may get insurance and commit suicide to improve the financial state of their family.
3. People who live outside the United States
If you get insurance and plan to live outside the country shortly, you need to ask the insurer upfront. Most insurers have this exclusion clause written within the fine print. Make sure that you will not leave the United States for good.
4. Life-Threatening Activities
Not all activities are for just fun as some might put your life in danger. Activities such as racing, skydiving, and others are dangerous hobbies. Yes, it is a must to be honest about these dangerous hobbies if you are into it. Insurers will add it to your premium, but it is crucial, so your beneficiaries can get the payout.
5. Act of War
There is an Act of War exclusion in almost all life insurance policies. For those civilians who died due to war, like journalists who always cover dangerous events like war. Also, it is for insured that travel in areas where there is an ongoing war or conflicts.
6. Illegal Doings
In case you die while doing an illegal activity or commit a crime, then your beneficiary will surely not benefit. If you stole and got killed, then say goodbye to any benefits for your loved ones. There are cases when people die of committing illegal activity even if they are not aware of it. In this case, the insurance provider will not give any payout. For instance, you got killed because of trespassing a property.
Life Insurance 2 Year Clause: Always Read the Fine Print
The golden rule of getting and before signing a life insurance application is to read the policy’s fine print. Pay attention to the exclusion as this will tell you how an insurer might not pay out in case of your death. It is not a complete list, so you mustn’t ignore the slightest detail inside the agreement or contract. Also, do not be an irresponsible policy owner by losing the benefit because you are not aware of exclusions.
Do Life Insurance Companies Check Medical Records After Death
Moreover, remember that you cannot get away with the exclusions by being dishonest. The insurance companies will investigate and get medical records after death. It will only put your loved one in great distress after your death. In case you are unsure of any detail within the fine print, do not hesitate to ask.
The beauty of getting the service of an independent agent from Coach B is that they will make you aware of these exclusions. So, you can’t miss any vital information about your policy. They will be the ones to read it for you and explain everything in detail.
If you are ready to apply for life insurance or have inquiries, you can easily reach us at 800-342-1537.
Coach B agents are well versed about the in and out of life insurance policies, so they can help you address any concern. They will also talk to insurers on your behalf to get the best deal when it comes to premium and coverage. It is possible to get the policy within 48 hours, depending on the type of content and insurer. Get a quote without contact information needed and results from diverse top rank providers.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.