Life insurance policies are frequently purchased to provide financial security for surviving loved ones when a family breadwinner passes away.  Because life insurance proceeds may be a fundamental part of an estate plan, the delay or denial of a death benefit can be financially devastating for family members.  This blog provides answers to frequently asked questions we receive about life insurance claim-related issues.

Can a life insurance company deny death benefits following the death of the insured if the premiums are up to date?

Generally, a life insurance company can only deny a claim following the insured’s death within the first two years of the policy.  This two year period is referred to as the contestability period.  When an insured dies during the contestability period, the life insurance company has the right to obtain and review medical and other records to determine whether the insured made any material misrepresentations when applying for the policy.  

Can an innocent mistake or omission in the application for insurance result in a denial of the claim?

The insurance company has the burden of proving that any misrepresentation in the application for insurance is material to the acceptance of the risk (issuance of the life insurance policy) in order to validly deny the claim.  Generally, a misrepresentation will not justify denial of the insurance claim unless it is material, that is, unless the information would have impacted the decision to issue the policy or would have resulted in the insurance company charging a higher premium for the policy.

You can reach Miami Life Insurance Claims Lawyer J.P. Gonzalez-Sirgo by dialing his direct number at (786) 272-5841, calling the main office at (305) 461-1095, or Toll Free at 1 (866) 71-CLAIM or email Attorney Gonzalez-Sirgo directly at [email protected].

J.P. Gonzalez-Sirgo
J.P. Gonzalez-Sirgo, P.A.
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