When an insurance company and a policyholder write a life insurance contract, it is designed to ensure that beneficiaries will be paid certain funds after the insured person’s death. The main benefit of life insurance is that it gives the insured individual a certain assurance that when they die, their family will not experience financial hardship. The two main kinds of insurance contracts are protection, or term policies, and investment, or whole life policies. Term policies are intended to cover the insured for a certain period of time. As long as the insured pays the premiums, the coverage continues to be in effect. When a person obtains an investment policy, it covers the insured’s whole life. Knowing the difference between the different types of contracts helps determine how the claim is to be handled by the carrier.
Has Your Claim Been Denied?
It is not rare for an insurance company to deny a claim. There are a variety of reasons that insurers may delay paying up what they owe you or your family after a loved one has died. For various reasons, they may try to rescind the policy claiming that the coverage had expired or finding inconsistencies on the insured’s application. Insurance companies may claim that the deceased had committed fraud against the insurance company or materially misrepresented some important information on the enrollment application. These kinds of accusations can be devastating to you and your family and it is in your best interests to have a life insurance attorney investigate the claim denial for you.