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Life Insurance

Life Insurance

At the difficult time of a loved one's death, the last thing that you want to happen is a refusal by the insurance company to pay the life insurance.

We can help if you have been denied payment.

The typical ground for a denial is a material misrpresentation made by the insured-deceased in the application. For example, the insured stated that he never smoked, however, he dies from lung cancer, and all of the medical records note that he was a heavy smoker. In this instance, the insurance company might have declined the application or write at a higher rate.  

In order for the insurance company to win it must show that the insured's misrepresentation was material as to whether or not the company would issue the policy, issue the policy at a higher rate, or issue the policy with certain limitations. This misrepresentation must have been made within 2 years of the date of death. If the misrepresentation were made more than 2 years before the date of death, then the insurance company cannot interpose the defense.

Here are some examples of material misrepresentations:

*The insured states that he had never been treated for heart disease, but he had a heart attack 1 year before the application. He dies from a heart attack 6 months after applying for the policy. This is a material misrepresentation, and the insurance company will win.

*The insured states in the application that she was never treated for mental illness although she was seeing a psychiatrist for psychotherapy (no prescriptions) for about 2 years before the application. The insured dies of cancer 1.75 years after the application. In this case the misrepresentation is material, and the insurer may deny coverage. This is so even though the deceased did not die from the condition which was misrepresented.

*The insured states that he earns $1,000,000 a year in order to get an insurance policy for $2,000,000. In reality, he earned $45,000 per year. The insured dies 1 year after beginning the policy. The insurance company can deny the claim because the insured's income is a material consideration as to the amount of insurance that it will issue.

If you have been denied life insurance, please call us for a free consultation at 1-800-581-1434.

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