Hidden information on health
If the insured hides some diseases from the LIC, the beneficiaries may lose payments, so it is very important to be honest with the insurer.
Refusal to pay contributions
The payment of insurance premiums keeps the policy active. If an LIC client skips at least one month payment, the insurer has the right to refuse full payment.
The former spouse is the beneficiary
Many states have adopted laws prohibiting ex-spouses from using life insurance after divorce. In case there are no specific provisions in marriage contract, the appointment of a former spouse as a beneficiary may automatically be invalidated.
Change of beneficiary at the very last minute
It is allowed to challenge the appointment of a beneficiary in many states, if someone puts pressure on a policyholder or he is not aware of his actions.
The life insurance claims processing can be complex and any mistake may lead to the wrongful rejection of the claim. Therefore, during conclusion of any financial transaction, it is important to carefully study the documents.
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