In preparation for your death and the toll it will take on your family or other beneficiaries, it is common to seek life insurance coverage, either personally or through an employer. However, it is not unusual for many insurers to dispute claims for several reasons, and some companies actively seek out those reasons to avoid paying the benefit.
When a person is in their 30s, they might assume that they have a great deal of their life in front of them, and that thinking about what will happen when they die is something they can put off until later. However, no one is immune to tragic accidents or events that could end up taking their life early.
Life insurance is a huge purchase for many families all across the state of Minnesota. When you get a life insurance policy, there is a lot of planning and organization behind such a decision.You have to provide a lot of information to your insurance provider, and you are preparing for something unfortunate that may happen many, many years in the future. Again, this is something you plan for, so if it were to ever be necessary, you know you can count on it.
Life insurance companies will come up with every excuse in the books to try to deny you coverage for your legitimate claim. They do this not because they have a legitimate denial to make, but because they want to protect their revenue. All that matters to them is how much money they bring in -- not what they send out.
A couple of weeks ago, we wrote a post about how insurers can justly deny your insurance claim. There are many ways they can do this, just as there are many ways that insurance companies will try to unfairly deny your claim, an act that is the very definition of bad faith in this context. Today, we're going to extend that discussion to life insurance policies, talking about how insurance companies will justly deny a person's claim.
It's so sad that this is even a "thing," but insurance companies utilize a number of strategies to mitigate their liability, or even outright deny coverage, when people try to collect on a life insurance policy. Life insurance serves a very important function in our society. Should the need arise, the policy is meant to provide financial assurances to the individual's loved ones so that they can live their lives in the wake of the passing of a family member.
Today, we're going to talk about some very basic terms that are involved in insurance and insurance law. These terms are common and are important to know, especially for people who are dealing with an insurance company that seemingly isn't holding up its end of the bargain or is outright involved in bad faith insurance tactics.
When you get life insurance, you aren't trying to dupe your insurer or commit any fraudulent acts. All you are trying to do is protect yourself and your family in case of a truly tragic event. Life insurance is a vital asset to many people all across the country. However, life insurance providers are obviously wary about who they are insuring and why. As such, life insurance providers place "contestability periods" into their policies to protect themselves from potentially dubious clients.
Imagine having a life insurance policy and feeling secure in your future, and your family's future, in the event that your policy is triggered. That security is a nice feeling. But then one day an accident happens and your policy is indeed triggered. Once your insurance company is notified, they do everything they can to mitigate their liability and ultimately determine that your accident is not covered under the policy.
Life insurance, as everyone knows, is a very important aspect to the lives of many people all around the country. Paying for that life insurance, though, can be a real pain -- and it is made even more difficult when your insurance provider pushes your rates through the roof. This is even harder to take when the price increase may have been done in breach of obligations under the policy itself.