Articles

Why Are NY Insurance Claim Attorney Denied?

by Shally Warner Owner

Dealing with the death of a loved one is difficult enough, however, when you find out that the life insurance claim was denied, the loss gets a lot harder to bear. With insurance claims, you can compensate for the funeral costs, reimburse the medical expenses and other things. For though nothing can make up for the emotional void in your heart, you can fill up the financial gaps in the household with the insurance money.

 

 

Can your insurance claim be denied?

 

 

Yes, insurance companies do hold the right to deny the monetary benefits and perks to the beneficiary after the death of a loved one if the terms of the policy are not properly followed. Before paying out the insurance money, the company sends an agent to the site to inspect the conditions under which the death has occurred, if it matches the causes stated in the policy then you get the money otherwise the company is not liable to pay you. Here are some reasons why insurance claims are denied by the NY insurance claim attorney;

 

 

The Death of the Policy Holder during the Contestability Period

 

 

The contestability period is basically that time frame when the insurance company investigates the policy holder’s background to check if the information he provided is valid or not. The contestability period is usually two years after the policy has been purchased. If the person dies during the contestability period then the company has the right to withhold the claim money until it verifies all the facts that were stated in the policy. In case any of the information provided is proved to be inaccurate, then the claim is denied.

 

 

The Cause of Death Doesn’t Match the Those Stated in the Policy

 

 

Usually, when you’re purchasing the life insurance policy you have to state the probable causes of deaths that you’re most susceptible to. There are some life-threatening conditions that the policy doesn’t cover, so be careful about going through the terms and conditions of the policy before you invest your money.

 

 

No Beneficiary was named

 

 

In case there is no beneficiary named, the life insurance attorney NJ can deny the insurance money to the family of the policyholder. The beneficiary is usually someone who is explicitly stated as the recipient of the insurance amount after the death of the policyholder. Also, if any pertinent information like medical conditions, criminal records, addictions, etc. are hidden from the insurance agent then the company has the right to deny the money.

 

 

Premiums Weren’t Paid on Time

 

 

Last but not least, if the premium amount, which is monthly payable, is not paid on time, then the company can withhold the insurance claim.

 

The policy premiums are agreements between the company and the policyholder where the beneficiary stated by the latter gets a lump sum amount after the death of the policyholder if a regular amount of premium is paid at regular intervals as stated in the terms of the agreement. The company usually allows a 30-day grace period for clients to cover up for their lagging premium payments.


Source:- http://shallywarner.booklikes.com/post/1957616/why-are-ny-insurance-claim-attorney-denied


About Shally Warner Freshman   Owner

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Joined APSense since, March 18th, 2019, From New York, United States.

Created on Oct 1st 2019 08:26. Viewed 31 times.

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