Life Insurance Coverage Denied

Even though it’s rare, life insurance companies have been known to deny coverage to certain applicants. While its “no big deal” to be denied life insurance coverage, it can sometimes be a shot to one’s pride or a wake-up call. Let’s take a look at how and why you can be denied and what you should do if you are.. We offer coverage up to $500,000 for No Medical Life insurance and Simplified Issue Life insurance. We do not ask if you've ever been denied life insurance and there is no medical exam or needles.. Life insurance companies have different underwriting guidelines for what they are willing to accept. For example, you may be denied by one insurance company for a condition such as Diabetes, but another one may accept you because your condition is controlled by medication.. The insurer is, therefore, less likely to make money from the premiums that you pay and the risk of approving the life insurance will need to be carried by other policyholders, increasing the rate that the insurer needs to charge. The 13 most common conditions that could result in a life insurance policy being denied or declined include: 1..

You can be denied life insurance for a number of different pre-existing conditions. If the condition is not serious, an insurance company may offer you coverage but charge a higher premium. Also, insurers may offer you a policy but limit the amount of coverage for which you are eligible.. In order for a life insurance company to payout a death benefit, the policyholder must name a beneficiary – the person that will receive the death benefit. If the insured failed to name a beneficiary, the life insurance claim would be denied. If that is the case, the life insurance provider will pay the death benefit to the estate of the ....

It provides benefits packages with some life insurance coverage to compensate for a few specific medical conditions and occupational hazards. The premiums are relatively low because the coverage is not as comprehensive. Final Thoughts. When your life insurance application is denied, it isn’t the end of the world.. An attorney can research the claim denial and assist you collecting any benefits wrongfully denied. Life Insurance Claims Denied for False Information. The most common reason a life insurance claim is denied is an alleged material misstatement made by the insured on the application..