One of the best things you can do for your family is to protect their financial future with a life insurance policy. The last thing you want is for their death benefits to be denied after you’ve passed. It’s a rare possibility, but it can happen. If you buy your plan from a reputable life insurance company and make your payments on time, then you don’t have much to worry about. However, it’s important to understand how and why an insurer can contest or delay payment on a claim so you can avoid this problem for your family.
Reasons A Claim Could Be Denied
Like we said, a life insurance claim denial isn’t common. In fact, it’s fairly easy to avoid. Below we’ve highlighted the reasons a claim can be denied or delayed so you understand what to do to avoid this situation.
Failure To Pay Policy Premiums
If you are not up to date on your premium payments when you pass away, your family may not be eligible for a payout. In fact, this is the most common reason for life insurance claim denials. So, it’s important that you pay your premiums on time, every time. If you don’t keep up with the payments your policy will eventually lapse. However, your insurance company typically notifies you of the late payment. Depending on your state, your insurance company may have to legally give you a grace period, typically about a month to pay the outstanding balance before they cancel the policy. This helps for those times when you need a little extra time to catch up.
Lying On Your Application
You are generally required to disclose any medical conditions and other risks such as dangerous hobbies when you apply for life insurance. The life insurance claim can be denied if you fail to give accurate information on your application. This is because your life expectancy is the base factor in determining your premiums, and whether or not you are eligible for a policy at all. Omitting important details on your application is known as “material misrepresentation”.
An incomplete or false application is another common reason for denials. Life insurance policies generally have a contestability period, which lasts about 2 years depending on the company and your state laws. During this time your insurance company can look into your policy and if they find a misrepresentation, they can decide the policy is void. If you pass away during this time, your insurer has the right to, and most likely will, investigate your family’s claim. If the company finds any misinformation, the company has two options: one, if the misinformation was small enough, they may look at how much you should have been paying on your premium and deduct that amount from the death benefit before releasing it to your beneficiaries, and two is out right denying the claim.
These options depend entirely on the insurance company, how big the misrepresentation was, and your state laws. So, the best thing you can do is just be honest on your application. Even if you have higher risks or health problems there are several life insurance policies that can and will cover you with the correct information.
Things You Should Expect To Disclose
Here are some examples of the kind of important information you have to disclose:
Medical history – You have to provide information on any current health conditions including your mental health. You also need to provide prescription history and family health history.
Dangerous hobbies – If you regularly participate in a dangerous hobby such as racing, mountain climbing, recreational piloting, and scuba diving you must tell your life insurance company.
Dangerous behavior – You have to disclose if you’re a smoker, have a criminal record, dangerous driving record such as a DUI conviction, or other traffic violations.
Dangerous jobs – Anyone with a dangerous job may have higher rates because of their daily risks at work. This includes construction workers, active military, firefighters, police, and pilots.
Contestable Circumstances
Contestable circumstances depend on how you pass away. Certain types of death can be excluded from coverage, most often linked with the contestability period we mentioned above. For example, if you say you are not a smoker and then pass away due to emphysema. Other contestable circumstances incur dying while performing an illegal act. While newer policies are starting to have less and less exclusions, older policies may exclude death during military service, acts of war, piloting a plane recreationally, scuba diving and mountain climbing.
Another contestable circumstance is suicide. Most life insurance policies come with a suicide clause, which states that benefits will not be paid if the policyholder commits suicide within a certain period of time after buying the policy (typically 2 years). Meaning your insurer may deny your family’s claim if you pass away due to suicide within that time period. If you or someone you know is having suicidal thoughts, please contact the National Suicide Prevention Lifeline at (800)-273-8255.
Not Providing Documentation
This one is less common, but it can happen so we’re putting it here just in case. When your family contacts the life insurance company to start the claims process, they will most likely be asked for certain documentation, at the very least they need the death certificate. If your beneficiaries don’t provide the documentation in time their claim can be denied.
Policy Term Has Expired
You could outlive the term of your term life insurance policy, which would result in no death benefits payment. If your policy is about to expire and you need coverage for longer you may be able to renew your policy (at a higher cost) at the end of your term. You may also be able to convert your term policy into a permanent life policy, but there is a window of opportunity to do so. If you’re interested in converting, make sure you know the deadline, so you don’t miss it.
No Designated Beneficiary
A life insurance claim may also be denied if the insured failed to name a beneficiary. Every policy stipulates who should receive the proceeds in the absence of a designated beneficiary. In the absence of a designated beneficiary, an insurance company will distribute the proceeds in accordance with the applicable state law or the policy terms. As insurance companies may mistakenly pay benefits to the wrong person, such claims may result in lengthy delays or denial.
What To Do If A Claim Is Denied
If you receive a claim denial letter it can be scary, especially if you relied on your loved one’s income and the money would supplement that income. If the insurance company finds that the policy holder died of suicide within their clause’s time frame or find another violation during the contestability period, the claim will not only be denied, it can also be disqualified from an appeal. However, other denials can be appealed, below are the steps you can take if you’ve received a denial letter.
Contact The Company
In the initial denial letter, the insurance company will detail the reason they’ve denied the claim. However, if the reasons are unclear or don’t have sufficient supporting information, the best thing to do is request additional information regarding their specific objections to paying out the death benefits. For example, if the denial just says “violation of terms” you can request what the violation was specifically and any documents that “prove” the violation. You should know if you are dealing with a life insurance policy that came from an employer there is typically only 60 days from the denial letter to file an appeal so don’t put off contacting them.
Contest The Decision
All insurance companies have an appeals process. You will have to file the appeal and provide evidence that the denial was incorrect. For example, if the denial is due to a lapsed policy, you would provide them with the receipts from payment premiums to prove the policy was in fact up to date. You have the option to represent yourself during this appeal. However, while self-representation is free, it comes with added emotional stress due to going through this complex process on top of grieving. In certain cases, you can contact your state’s insurance department or attorney general for help through the appeals process. Generally, the state departments of insurance and attorney general’s office offer easy and free resources to help get your death benefit as long as the claim was valid. Having state representation carries some serious weight during the appeals process so consider contacting them for help.
Working With EZ
It is important to understand why life insurance claims can be denied in order to ensure that your family receives the benefits you want to leave for them. And if you’re in the market for a policy that will safeguard your family’s financial future, be sure to compare policies from different companies and work with a knowledgeable agent. To get started simply enter your zip code into the bar below. Or you can contact one of our licensed agents today at 877-670-3560.
Depending on the type of life insurance you apply for, you might have to undergo a medical exam. For example, permanent life insurance policies and term life insurance policies typically require medical exams. If you do have to undergo a medical exam, the results will determine if you qualify for a policy, and how much you will pay for your monthly premium. So, what does the medical exam include and what results are insurers looking for exactly?
A life insurance medical exam, also known as a paramedical exam, is part of the underwriting process. The underwriting process is how life insurance companies determine how much of a risk you are to insure. They use an exam as part of this process because the healthier you are, the less of a risk you are to insure, and so the less you will pay in monthly premiums. But if the results of your exam are concerning, you will have higher monthly premiums, or may be denied altogether.
What Does the Medical Exam Include?
The medical exam will typically include:
A survey about your health, medical history, and lifestyle
A check of your pulse and blood pressure
A blood test
A measure of your body mass index (BMI)
A urine sample
An EKG (in some cases)
These exams do not have to be an inconvenience. Many life insurance companies will offer to send a medical examiner to your home. And they can generally conduct the exam in 30 minutes or less.
What Your Insurance Company Is Looking For
While each insurance company looks at different health conditions differently, there are some constants in what insurers are going to look at. Typically, they will be looking at the health of your heart and arteries, kidney, bladder, liver, and pancreas. The exam will also show if you have HIV or drugs in your system, which can negatively affect your chances of qualifying for a policy.
With these plans, you will not have to undergo a medical exam!
If you are worried that you won’t pass a medical exam, or that you will end up paying a lot for life insurance, guaranteed issue, simplified issue, or instant-approval term life insurance policies are great options. With these plans, you will not have to undergo a medical exam, and will not have to provide blood work or any other tests. Insurers cannot disqualify you for these policies for any health-related reasons.
In addition, with a no-medical exam life insurance policy, you will also get instant approval. On the other hand, when you sign up for a life insurance policy that requires a medical exam, you will have to wait between 4-6 weeks after applying to find out if you qualify.
Don’t be put off by the thought of a medical exam! They’re generally fast, convenient, and nothing to worry about. And remember, if you pass away without life insurance, your loved ones may be left to deal with a large financial burden. They would have to pay for your funeral expenses, which are on average $10,000. As well as other bills they have relied on you to help with, such as a mortgage or college tuition. However if you are unsure whether you would pass a medical exam, a no medical exam life insurance policy can help you get the coverage you need to protect your loved ones.
The best way to find the right life insurance policy for you is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check no medical exam life insurance rates today.
One million dollars sounds like a lot of money, right? But in terms of a life insurance policy, it really isn’t a crazy amount when you think about all the debt, like mortgage and car payments, as well as other monthly and daily expenses, that your family would be left with if you were to pass away. Money will go quickly when paying off these debts, which is why it’s important to look into million-dollar policies for your family.
Think about it this way: if you’re married and bought a new home that costs $400,000, and you were to pass away, how would your spouse be able to afford your mortgage payments without your income? Having a large policy, such as a million dollar policy, will give you peace of mind knowing that your children and partner would be able to afford these mortgage payments, while also having enough money to help pay for other expenses your income would have covered. This type of large policy would mean that your family would be financially secure if the unexpected were to happen.
While million dollar policies are a good idea for a lot of people, you should know that there are some requirements you must meet in order to get one. So what can you do to qualify for one? Try adopting the following 4 healthy habits that will help you qualify for a million dollar policy.
1. Quit Smoking
Cigarette smoking is linked to 80 to 90% of cases of lung cancer, which is a red flag for insurance companies.
One of the first questions that most life insurance companies will ask when you apply for a policy is if you use tobacco products. This is because insurers always try to assess what kind of risk an applicant will be at before providing them with a policy. And because cigarette smoking is linked to 80 to 90% of cases of lung cancer, insurance companies see this as a huge red flag. So if you are a smoker, consider quitting and then waiting before you reapply for a life insurance policy. If you do this, you might qualify for lower premiums on a million-dollar life insurance policy.
2. Lose Weight
Your weight is another thing that insurers take into consideration when determining both your premiums and how much coverage you qualify for. Their view is that if you are overweight or are considered obese, you will be more likely to develop health conditions, such as diabetes, high cholesterol, heart disease, and stroke. So losing weight will not only improve your health overall, it will also make you more likely to be able to purchase a million-dollar life insurance policy at a reasonable price.
3. Eat Healthy & Exercise
Eating healthy and exercising are important parts of living a healthy life. Choosing to eat better and getting at least 150 minutes of moderate exercise a week can help you lower your cholesterol, maintain a healthy weight, and reduce the risk of heart issues. Not only that, but these habits will make you look better to life insurance companies, and could help you get your million dollar policy.
4. Avoid a High-Risk Lifestyle
If you are into scuba diving, jumping out of planes, or any other high-risk activities, this is generally a red flag for life insurance companies. And not only is your lifestyle important in determining your eligibility, but so is your profession. If you have a high-risk job such as a logger, you will also be considered a bigger risk for a life insurance company to take on. Consider avoiding high-risk activities that will result in higher premiums, as well as a lower benefit amount.
How To Find The Best Policy
There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Life insurance is a major part of a family’s financial security, and with the right policy, you can make sure that your family will be protected in case the worst happens. So looking for a policy is the right choice! But you’ll need to apply for a policy, and you should know that life insurance companies consider multiple factors when deciding if they should offer you coverage. They will review your health, finances, driving record, and even your criminal record. And if your record includes a felony or misdemeanor, it’s important that you are honest on your application. So how exactly does a criminal record affect your ability to get a life insurance policy?
Do Life Insurance Companies Ask About Criminal Records?
Insurers will typically do background checks on all applicants, including asking about your criminal record, primarily to prevent insurance fraud. They will also ask about your criminal record to help determine rates and eligibility. This is because, to them, your criminal record is one indicator of the risk they are taking in insuring you. And remember, the higher the risk they consider you, the higher your premiums will be.
Eligibility With A Criminal Record
If you don’t have a completely clean record, it’s natural to wonder if you’ll still be approved for a life insurance policy, or if certain types of crimes will disqualify you from getting a policy. Life insurance is based on risk factors including criminal records, but in many situations you will still be eligible.
Can You Be Denied?
The specifics in your record will matter, and different companies will have different rules for eligibility. For example, repeat offenses might mean being denied a policy. Certain crimes might also make you more likely to be denied, including things like insurance fraud.
If You Are Denied…
It can be very frustrating to deal with a life insurance denial because of past mistakes. But just because you’ve been denied by one company doesn’t mean that all insurers will deny you. Different life insurance companies have different requirements and criteria for providing policies to individuals, so it’s very important to compare different policies from different companies.
There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
You might have a lot of preconceived notions about what it takes to get a life insurance policy. You might even be put off by how frustrating or difficult you think the whole process will be. But the expectations that people have when looking for a life insurance policy are not necessarily the reality. Knowing what to expect will make the process much easier, so let’s look at some of the expectations about life insurance that aren’t necessarily the way it really is.
“I’ll need a medical exam or a blood test to get life insurance.”
The reality is that, yes, a lot of life insurance companies will ask their applicants to undergo a medical exam, including providing lab work. However, not all life insurance companies, and not all policies, will require a medical exam or blood test. Certain policies will only require you to answer a few quick questions regarding your health status, while other policies, such as guaranteed issue policies, will not require any medical exam or answers to health-related questions.
“I’ll have to go through an agent, who’ll try to upsell me.”
This is also not true, because the reality is that you can search for policies from different companies on your own. There’s no need to work with an agent during the research and application process unless you want to. Whatever you choose, it’s very important to compare policies, because this will give you the upper hand when finding the right policy at the right price.
“The application process is time-consuming.”
Yes, searching for a policy can be time-consuming, but the application process is not. You can complete a questionnaire and get coverage the same day, or at least within a week after applying for a policy.
“Life insurance is too expensive and complicated.”
Many people think that life insurance policies are a luxury, and only people who have a lot of money will purchase them. In fact, more than half of all Americans think that the cost of life insurance will be three times what the actual cost is. The reality is that life insurance policies can be as cheap as $30 a month, depending on your health. You can tailor your policy to fit your budget and needs, so there’s no need for them to be expensive or complicated.
Need Help?
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance.
We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Around 1 in 12 people (25 million people) in the US have asthma, and the numbers continue to increase every year. For these 25 million Americans, life insurance might seem like an impossibility because their condition could mean higher premium prices. And while having asthma does affect life insurance because it’s a pre-existing health condition, you probably won’t get denied coverage because of it. The best way to get life insurance if you have asthma is to compare policies offered by different life insurance companies.
When you apply for a life insurance policy, insurers will review your medical history in order to see how healthy you are, and determine if they want to offer you a policy. Pre-existing health conditions mean you’ll be a higher risk to insure for the long term, and since asthma is considered a pre-existing health condition, having it might raise your rates slightly. But it does depend on how severe your asthma is.
If you have asthma and are looking for a policy, insurers will typically ask the following questions:
When were you first diagnosed with asthma?
How frequent are your asthma attacks?
Are you on any medication for it?
Do you take your medication as prescribed?
Have you ever been hospitalized due to your asthma?
Does asthma limit any of your activities?
Do you smoke or have you ever smoked?
After you have answered these questions, the insurer will determine your rate based on several factors, including how severe your asthma is and the insurance company’s policy on asthma. It’s important to remember that different life insurance companies will view different health conditions differently. Some life insurance companies will consider asthma as a more severe condition, while others will not.
Asthma & Life Insurance Classifications
Typically your rate class will be based on the type of asthma you have. If you have Mild Bronchial Asthma, in which your lungs are clear and your asthma is mild, you could be approved at Standard or even Preferred rates.
If you have Moderate Bronchial Asthma, meaning your asthma is chronic, and you have slight wheezing and acute episodes that need to be treated by spray or injections, you may be approved at Standard rates.
If you have Severe Bronchial Asthma, and you exhibit severe episodes of asthma and are treated by hospitalization and chronic steroid use, you may be approved for Substandard rates, which are generally the highest rates.
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from – even if you have asthma – that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
