Unfortunately, we do not live in a perfect world where every insurance claim is quickly handled and paid out. Sometimes, even when a person has a legitimate claim to make, they wind up getting into insurance disputes in Texas.
When this happens, they could very likely end up getting denied altogether. If this happens to you, then it is important to get some help from the best life insurance attorney in Texas.
But it is best to try and prevent denials in the first place. To do that, read through these common reasons life insurance claims get denied.
- Material Misrepresentations
This might sound confusing, but it is really just a term that means the information provided by the insured on the life insurance application does not match the information found when an insurance company investigates a claim.
These investigations are a result of the insurance company contesting the policy, which they can do if the insured died within two years of the start of the policy.
Just contesting the policy or finding differences between the life insurance application and the revealed information is not enough to deny a claim. The previously unknown information has to be something that could reasonably impact the risk of the insured dies.
- Lack of Policy Payments
Many of the claims that get denied every year are a result of something called a policy lapse. This occurs when the owner of a life insurance policy does not pay their policy premiums on time. At which point, the policy may lapse and no longer cover the insured.
So even if you have a legitimate claim to make on a life insurance policy, the insurance company could use non-payments of your insurance premiums to say that your policy has lapsed and then deny your claim.
- Policy Exclusions
One of the common tactics used by insurance companies to avoid having to pay claims is to include ambiguously worded exclusions within a life insurance policy. This lists scenarios in which the policy would not cover the deceased.
At the very least, this will likely result in your claim being delayed, but it could also mean that it gets outright denied by the insurance company.