Though there are many different types of life insurance policy options that can often be difficult to understand, life insurance is something most Americans must have. If you are married, especially if you have dependent children or if you have debts, your family could be in serious financial trouble if you should die suddenly and your income were no longer available. Spouses are often left unable to make all the payments, raise the children, educate them, etc. on a single income. Life insurance is your protection against the dramatic life changes that occur in the event of your death.
We tend to think that if we buy life insurance and pay the premiums, then upon our death, collecting the life insurance will be fairly quick and easy for our beneficiary, but that is often not the case. Life insurance claims are often denied. Apart from fraud in the policy on the part of the policy holder, the most common ground life insurers use to deny claims is that there was a “material misrepresentation” in connection with the insurance.
Misrepresentation may occur in the application for insurance or in a later amendment to the application. Insurance companies misrepresentations are made in the applicant’s work history, age, income, whether or not they smoke, and whether or not they have other insurance in force. The most commonly charged misrepresentations involve the applicant’s heath and medical history.
Many life insurance claims are paid without much fuss on the part of the insurer, but there are times when claims are delayed and denied. The claims that are subject to the most suspicion are the ones filed in the first two years the policy is in force. During this period, if the person named in the policy dies, the insurance company has a right to investigate the death.
If your you would like to learn more about what you can do if your life insurance claim has been delayed or denied in New York or New Jersey, please visit the website of the Insurance Litigation Attorneys at Trief & Olk.
