Article: Life Insurance Policy Benefits: The Two Year Contestability Period
Most people think that collecting on life insurance proceeds is a simple process – and it should be, in theory. However, most life insurance policies have a two year contestability period that can become an issue when beneficiaries attempt to collect the proceeds.
Always an issue with life insurance
A life insurance policy’s two year contestability period is always an issue when it comes to life insurance, according to Bob Scott, a California attorney and partner with the Advocate Law Group, and insurers often attempt to use it to their advantage. He explained:
Scott says that those kinds of things normally escape the human memory and normally escape being written down. He continued, “Unfortunately, they’re asked in these huge, open netted questions. If the insurance company finds that you did see a doctor because you stepped on a nail and didn’t tell them, they may try and rescind your policy – even though you may have died from something completely unrelated to that event.”
Consumers should push back
When a life insurance company wrongly denies the proceeds of a policy, Scott says those are fertile grounds for pushing back against the insurance companies these days and telling them that it’s just not fair. He explained:
Accidents and sickness
Another type of life insurance claim concerns accidents or sickness. Scott explained how this type of claim works with the following example:
Cooperation is the key to getting results
Scott says that the most important thing for consumers to remember is that cooperating with insurance companies is the key to getting results. He explained, “Cooperate with life insurance companies by providing them with the necessary information and documentation. Also, keep a record of everything you say. Communicate with them in the mail – and in writing. Make sure they communicate with you – again, in writing. Make sure they spell out in the denial the basis with particularity as to the provisions in the policy that they rely upon and the facts that they assume as the basis for the denial.”
If your insurance company hasn’t paid your valid life insurance benefits, they may have acted in bad faith. To contact a qualified attorney whose practice focuses in this area of the law, please click here. Consultations are free, without obligation and are strictly confidential.
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