Families buy life insurance with the expectation that it will be there when they need it, but they can encounter problems when filing a claim. Most people don’t think much about what could interrupt a payout, and sometimes the reasons aren’t obvious until a claim is already being reviewed. Understanding a few common issues, with the help of Rob Hill Insurance Group, serving Atlanta, GA, can help avoid surprises later.
When Policy Details Don’t Match
One reason a claim may be denied is if the claim information provided doesn’t line up with the policy application. If health history, tobacco use, or certain lifestyle details were left out or misreported on the application, the insurer may question the validity of the policy. It doesn’t always come from intentional omissions; sometimes applicants forget something they didn’t think mattered. Still, inaccurate details can slow everything down or stop the claim entirely.
When Premiums Lapse
Another situation involves missed payments. If a policy lapses because premiums weren’t kept up, coverage may no longer be active at the time of a claim. Many insurers offer grace periods, but those windows close quickly. Families sometimes assume a policy is still in place because the owner planned to catch up later, only to find that the coverage ended months before.
Contestability and Exclusions
Life insurance policies include a contestability period, usually the first two years. During this period, the insurer can investigate claims more closely. If something doesn’t match what was written in the application, the claim may face delays or denial. There are also exclusions tied to certain causes of death, depending on the policy. These vary, but they’re important to review so families know what the contract covers.
It helps to check policy details every so often and keep information up to date. If something is unclear, talking with your agent at Rob Hill Insurance Group can make sure the coverage works the way it’s meant to when the time comes. We’re currently serving Atlanta, GA.