bs-preloader__icon
ru kz en

What are the reasons why US insurers refuse the claims on life insurance policies?

American life insurance companies (LICs) very rarely refuse the claims when an insured event occurs. PRNewswire has analyzed the most common reasons for rejection.
What are the reasons why US insurers refuse the claims on life insurance policies?

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.

Source: https://www.prnewswire.com/news-releases/5-reasons-why-your-life-insurance-claim-may-be-denied-and-how-to-stop-it-301189808.html

Photos are from open sources.

Share
read also
How to save for a high income in retirement
How to save for a high income in retirement

People in Kazakhstan often wail about small pensions. We will tell why the elderly re...

Kazakhstanis will receive two packages of medical services
Kazakhstanis will receive two packages of medical services

ASTANA. KAZINFORM. A correspondent of the MIA Kazinform reports about Elena Bakhmutov...

Why should parents buy themselves a life insurance policy?
Why should parents buy themselves a life insurance policy?

The reason why parents may purchase life insurance is to provide financial security f...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application