Usually, upon presentation of proof of death and a claim form, the claim is paid. However, a claim could be denied, depending on circumstances.
In Canada, a claim within the first 2 years could be denied for a material misrepresentation of fact. This essentially means you did not tell or disclose the truth on something that would have changed an underwriting decision. After 2 years you would have to have committed fraud which is much more difficult to prove. A life insurance contract should be approached as a contract of utmost good faith where all parties give full disclosure. In other words, be sure and tell the whole truth and nothing but the truth.
Suicide within the first 2 years or last reinstatement would also cause a claim to be denied. If there was an accidental death rider, then that portion of the claim would not be paid unless the death is deemed accidental.
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Laws are similar, but vary by jurisdiction. You should check the wording in your policy, your local insurance act and, if necessary, a lawyer.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
It is not a common occurrence, but yes it can happen. There are certain types of policies that have time limits built in that if the insured were to die during these periods it would be denied or premiums returned. Most all life policies have a two year wait for death by suicide, which would cause a denial. There are policies with exclusions for cause of death for example "war or act of war". Again none of this is common but does happen.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
If a policy has been applied for honestly and issued according to best underwriting practices, then this is probably not a possibility. There are circumstances, however, that could cause a denial. Policies are commonly issued with a"contestability period" which is usually 2 years from the date of issue. Simply stated, if an applicant willfully misleads, misrepresents or deliberately withholds material information from an insurance company during the application and underwriting process, then if that person dies during the contestability period, it is possible for a company to deny benefits.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Even with a death certificate a death claim can be denied. In this very unlikely event, the company will return the premiums paid. Policy provisions allow for a period of time during which they can contest the claim. Suicide is the most obvious reason for declination. Death claims have been denied when the identity of the insured was not adequately revealed in the application. Fraud is a major concern, particularly when death closely follows the issuance of a policy.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Barring extreme cases such as insurance fraud by the policyholder, or insolvency by the insurer, you can depend on the claim being paid. Even if you die from a “pre-existing condition.”
Example: a number of years ago I had a client who unfortunately had a long history of heart attacks. Sadly, he was only in his early forties. And he kind of knew the big one was coming. Every year, he would have me shop for additional coverage. I always disclosed his medical history to the carriers, and you know they charged him a lot.
The tragic day finally came and he died on the operating table. I expedited all his claims. One would think there would be long delays since he had died of something in his history. Maybe even a carrier or two would deny the claim? Nope. Because I had thoroughly prequalified him and everything was above board, most companies took but a few extra days to make sure all was in order. His family received every dime with two weeks.
Life insurance claims may be denied, if there's inaccurate information on an application.
If death occurs during first 2 years, insurance companies will "contest" the claim. this included doing a review of the application, and reviewing medical records to support answers from an application.
Also, if there's "fraud" involved with the application process, an insurance company can always refuse to pay the claim.
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In Canada, a claim within the first 2 years could be denied for a material misrepresentation of fact. This essentially means you did not tell or disclose the truth on something that would have changed an underwriting decision. After 2 years you would have to have committed fraud which is much more difficult to prove. A life insurance contract should be approached as a contract of utmost good faith where all parties give full disclosure. In other words, be sure and tell the whole truth and nothing but the truth.
Suicide within the first 2 years or last reinstatement would also cause a claim to be denied. If there was an accidental death rider, then that portion of the claim would not be paid unless the death is deemed accidental.
.
Laws are similar, but vary by jurisdiction. You should check the wording in your policy, your local insurance act and, if necessary, a lawyer.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Example: a number of years ago I had a client who unfortunately had a long history of heart attacks. Sadly, he was only in his early forties. And he kind of knew the big one was coming. Every year, he would have me shop for additional coverage. I always disclosed his medical history to the carriers, and you know they charged him a lot.
The tragic day finally came and he died on the operating table. I expedited all his claims. One would think there would be long delays since he had died of something in his history. Maybe even a carrier or two would deny the claim? Nope. Because I had thoroughly prequalified him and everything was above board, most companies took but a few extra days to make sure all was in order. His family received every dime with two weeks.
If death occurs during first 2 years, insurance companies will "contest" the claim. this included doing a review of the application, and reviewing medical records to support answers from an application.
Also, if there's "fraud" involved with the application process, an insurance company can always refuse to pay the claim.