Life insurance is an agreement that is signed between an insurance firm and the policyholder. For regular monthly payments, the insurer promises to pay out the sum to the beneficiaries of the policyholder’s at the time of the death of the policyholder. There are however several reasons the life insurance policy might not be able to pay.
Suicide
The majority of life insurance policies contain a suicide clause which excludes the coverage of suicide-related deaths in the initial two years after the policy has been in force. This is due to suicide being generally regarded as an existing condition. After two years it is generally covered, however there are exceptions. For instance, certain policies might not cover suicide when it’s committed when one is effects of alcohol or drugs.
War
Some life insurance policies don’t allow the possibility of coverage in case of the event of war. This is due to war being thought to be a risky affair. If you’re interested in purchasing life insurance, and you might be assigned in a war zone, you should inquire from your insurance company regarding their policy regarding coverage for war.
Self-harm that is intentionally done
Certain life insurance policies don’t provide the coverage of death caused by intentional self-harm, including cutting or overdose. This is due to the fact that self-harming intentionally is considered to be suicide.
Aviation
Certain life insurance policies do not provide protection for deaths while in an aircraft. This is due to the fact that flying in an aircraft is thought to be a high risk task. If you’re a pilot or frequently fly, you should check with your insurance company regarding their policy regarding aviation insurance.
Certain dangerous activities
Certain life insurance policies do not provide the coverage of death when participating in hazardous activities for example, skydiving and diving scuba. This is due to the fact that these activities are deemed to be high-risk. If you’re considering engaging in risky activities, you should inquire with your insurance provider about their policies regarding the coverage of these activities.
Pre-existing conditions
Certain life insurance policies do not provide protection for deaths caused by an existing medical condition. Pre-existing medical ailments are usually considered as a risk factor for the death of a person. If you suffer from an existing condition, make certain to inquire with your insurance provider about their policies regarding insurance coverage for pre-existing medical ailments.
Fraud
If you falsify your life insurance application the insurance company might be able to denial your claim. The reason is that lying about an application is considered fraud. In the case of example, if are asked whether you smoke and you respond that you don’t, yet smoke then the insurance company might be able to reject your claim in the event that you die due to a smoking-related disease.
Insufficient payment of premiums
If you do not pay the monthly life insurance fees, the company might be able terminate your insurance. If your insurance policy is canceled by the insurance company, this is one of the common reasons life insurance won’t pay out.
It is essential to study the policy on life insurance carefully to know the extent of what is covered. If you have any concerns regarding your policy, make sure to speak with the insurance provider.
Here are some additional guidelines to avoid having the life insurance policy claim rejected:
Be honest with an application for life insurance.
Make sure you pay your premiums at the time you need to.
Take the time to read your policy thoroughly and know what is and what isn’t included.
If you have any concerns regarding your policy, you can contact an insurance agent.
By following these steps to follow, you will be able to make sure that the life insurance plan pays out at the time you need it the most.
Menu